Stocks in Focus on April 23, 2021: BEC and SAT

Stocks in Focus on April 23, 2021: BEC (Maybank Kim Eng TP at ฿12.00/share) and SAT (KGI Securities TP at ฿24.50/share).

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on April 23, 2021.

 

Maybank Kim Eng has given a “BUY” recommendation on BEC World Public Company Limited (BEC) with a target price at ฿12.00/share.

Maybank stated that the business restructuring will halt the 7 year depreciation of earnings, with earnings expected this year to turnaround to 741 million baht from 1) recovery ad revenue +4 % YoY from a comeback of Sorayuth and 2) Profit margins have strengthened after Ad.rate has recovered and fixed costs have been reduced over the past two years.

 

KGI Securities has given an “Outperform” rating on Somboon Advance Technology (SAT) with a target price at ฿24.50/share.

KGI expected SAT to continue gaining momentum with an estimate of SAT’s 1Q21F net profit to grow 30% YoY and 4% QoQ to 250 million baht. The strong growth YoY should be driven by i) top-line growth of 10% YoY to 2 billion baht, and ii) gross margin expanding 2.4ppts YoY to 20.7%.

Overall, SAT’s top-line is expected to outperform the auto industry growth due to new orders received and 20% of 1Q21F revenue being diversified to the resilient agriculture tractor business.