Stocks in Focus on April 16, 2021: CENTEL and TPIPP

Stocks in Focus on April 16, 2021: CENTEL (KGI Securities TP at ฿36.50/share) and TPIPP (Maybank Kim Eng TP at ฿5.50/share).

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on April 16, 2021.

 

KGI Securities has given an “Outperform” rating on Central Plaza Hotel Public Company Limited (CENTEL) with a target price of ฿36.50/share.

KGI expected CENTEL to report a wider QoQ normalized loss of Bt570mn in 1Q21F from a normalized loss of Bt231mn in 4Q20. Overall, both hotel and restaurant businesses have seen a temporary hiccup in 1Q21F due to the new wave of COVID-19 outbreak in Thailand that caused i) total RevPar growth to tumble to -81% YoY in 1Q21F (4Q20: -75% YoY), and SSSG to plunge to -26% YoY (4Q02: -20% YoY).

Looking forward, KGI expected both hotel and restaurant businesses to see improvements from 2H21F onwards due to COVID-19 vaccine roll out as well as the local pandemic situation improvement.

 

Maybank Kim Eng has given a “BUY” recommendation on TPI Polene Power Public Company Limited (TPIPP) with a target price at ฿5.00/share.

Maybank expected 1Q21 profit to slow down to THB1.05b (-10% QoQ, + 9% YoY) due to TG8 maintenance shutdown. Outlook for the rest of 2021 is expected to improve from the installation of additional boilers.

The company hopes to win bidding for several new power plant projects. Recently, TPIPP won the bidding of WTE power plants in Songkhla and Nakhon Ratchasima with capacity of 8MW and 9.9MW respectively.

In addition, TPIPP is bidding and preparing to bid for 8 other WTE power plants, totaling 135MW. The current share price is trading at a low P/E 2021 of 7.6x while offering a good dividend yield of 6.6% (assuming 50% of profit).