Analysts Recommend “BUY” on ICHI, Expecting High Profit Growth in 1Q21 from New Products

Analysts Recommend “BUY” on ICHI, Expecting High Profit Growth in 1Q21 from New Products.

The share price of Ichitan Group Public Company Limited (ICHI) rose ฿0.10/share or 0.70% to close the morning session on April 21, 2021, at ฿14.40/share with a trading value of 556 million baht. The highest share price in the morning session was ฿14.80/share and the lowest was ฿14.30/share.

 

Maybank Kim Eng has given a “BUY” recommendation on ICHI with a target price at Bt16.60 per share, stating that the company is entering the growth phase in the next few years. The security company expected 2021-22 net profit to grow 31% and 24%, respectively. The increase is due to revenue recognition from new products, an increased OEM orders and a strategy to penetrate grocery stores to expand sales channels. Moreover, the new products will have higher GPM and economies of scale.

 

Finansia Syrus Securities (FSS) has also given a “BUY” recommendation on ICHI with a target price at Bt15.00 per share, emphasizing profit boost from new products, especially Thailand’s first terpene-flavor green tea that is expected to be displayed exclusively in 7 Eleven for the first 4 months.

1Q21 earnings were expected to increase 46.4% QoQ from higher production before 2Q, which is a peak season due to it being summer in Thailand. Meanwhile, FSS expected higher demand for vitamin water amid the new Covid-19 outbreak. The security company maintained 2021 earnings estimate at +44.1%.

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