Stocks in Focus on April 19, 2021: GULF and COM7

Stocks in Focus on April 19, 2021: GULF (KTB Securities TP at ฿40.00/share) and COM7 (KTB Securities TP at ฿85.00/share).

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on April 19, 2021.

 

KTB Securities (Thailand) (KTBST) has given a “BUY” recommendation on Gulf Energy Development Public Company Limited (GULF) with a target price at ฿40.00/share.

KTBST had a positive view on the tender offer for INTUCH due to 1) GULF would not need to purchase ADVANC due to an unattractive tender offer price. 2) GULF would need 100-140 billion baht to acquire 60%-80% of INTUCH shares, which would increase its D/E to 3.0-3.5X (debt covenant net D/E 3.5X), resulting in a lower chance for a capital increase. 3) The tender offer would generate more upside to GULF’s normalized profit around 8-10 billion baht per year.

 

KTB Securities (Thailand) (KTBST) has given a “BUY” recommendation on COM7 Public Company Limited (COM7) with a target price at ฿85.00/share.

KTBST raised target price for COM7 from ฿60.00/share to ฿85.00/share, based on 2022E PER at 42x (+3SD above 5 yr average PER). KTBST estimated 1Q21 normalized profit at 463 million baht, an increase of 61% YoY and 17% QoQ, from higher revenue by 29%. The increase would be due to 1) a full-quarter income recognition from new 100 branches, 2) sales revenue from iPhone12, 3) higher sales from Xiaomi and Work from Home products. KTBST revised up 2021 normalized profit by 6% to 1.89 billion baht, representing a 31% increase, and revised by 2022 normalized profit by 11% to 2.41 billion baht, representing an increase of 28%.