The share price of Synnex (Thailand) Public Company Limited (SYNEX) rose ฿2.60/share or 14.21% to ฿20.90/share with a trading value of 637 million baht.
KTBST Securities maintained a “BUY” recommendation on SYNEX, but revised a target price to ฿25.00/share, which is pegged to 2021E PER of 27.7x (+2SD above its 5-year average PER) from ฿20.00/share based on 2021E PER 23.6x (+1.25SD), reflecting a net profit forecast adjustment and re-rate targeted PER.
KTBST increased its 2021E net profit forecast by 5% to 762 million baht (+37%YoY) after revised GPM to 4.6% as result of higher revenue from non-mobile, while projecting 2022E normal profit of 952 million baht (+25%YoY) driven by a 19% growth revenue from partnership, new product line and GPM expanded to 4.7%.
SYNEX’s share price outperformed the SET Index by +17%/+214% in three and twelve months. KTBST reiterated a BUY rating with key catalysts as follows: 1) opportunities for partnership and new product launching as SYNEX’s strength is to have places for distribution more than 6,000 and 2) a high demand for EV (Electrical Vehicles).