TISCO-STGT Climb to a New High in 2021 with Good Fundamentals and High Dividend Yields

The share price of Tisco Financial Group Public Company Limited (TISCO) and Sri Trang Gloves (Thailand) Public Company Limited (STGT) edged higher to the highest in 2021 at the closing of a wild morning session on April 8, 2021, amid rising concerns over the new spread of coronavirus cases that would slowdown Thailand’s economic recovery.

 

TISCO and STGT are in different industries, but both securities are considered good fundamental stocks with high dividend yield, making them attractive stocks for traders amid volatility in the Thai stock market.

 

TISCO closed the morning session at ฿99.50/share, increased ฿1.00/share or 1.02% with a trading value of 864 million baht. The highest price in the morning session was ฿100.50/share and the lowest was ฿98.25/share. The share price rose 11.74% this year.

TISCO has a dividend yield of 6.4%. The company offered a dividend payment of ฿6.30/share with an ex-dividend date on April 28, 2021. The payment date is on May 17, 2021.

 

The consensus gave “BUY” recommendations on TISCO with target prices ranging from Bt105 – Bt110 per share, expecting high growth in 1Q21 from the lower provision and good cost management. Meanwhile, an increase by 44% YoY in revenue from brokerage would contribute to TISCO’s performance as well.

The consensus estimated TISCO’s earnings in 1Q21 around 1.64-1.80 billion baht, but added that the loan growth is still shrinking. In addition, earnings in 2021 were forecast at 6.37-7.06 billion baht, an increase from 6.06 billion baht in 2020.

 

STGT closed the morning session at ฿46.00/share, increased ฿1.25/share or 2.79% with a trading value of 2,341 million baht. The highest price in the morning session was ฿46.50/share and the lowest was ฿45.75/share. The share price rose 22.30% this year.

STGT has a dividend yield of 4.8%. The company offered a dividend payment of ฿2.00/share with an ex-dividend date on April 12, 2021. The payment date is on April 28, 2021.

 

KTBST Securities has given a “BUY” recommendation on STGT and a target price of ฿58.00/share, expecting 2021 earnings of 35,582 million baht (+147% YoY) as the selling price of rubber gloves is on upward trend throughout the first half of this year. KTBST also saw that U.S.’s ban on Malaysia’s Top Glove Corp. over forced labor will benefit STGT.

Trinity Securities also rates “BUY” on STGT with a target price of ฿54.00/share, forecasting earnings in 1Q21 to grow 2,300% YoY to 10,000 million baht as the selling price would continue at the same rate in the second half of this year.