Stocks in Focus on April 26, 2021: DCC and BJC

Stocks in Focus on April 26, 2021: DCC (Maybank Kim Eng TP at ฿3.18/share) and BJC (Maybank Kim Eng TP at ฿44.00/share).

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on April 26, 2021.

 

Maybank Kim Eng has given a “BUY” recommendation on Dynasty Ceramic Public Company Limited (DCC) with a target price at ฿3.18/share.

Maybank expected DCC’s 1Q21 earnings to hit a new record of 460 million baht, an increase of 27% QoQ and 25% YoY. The 2021 outlook is expected to grow, driven by new product launches to offset higher gas costs, coupled with rental income and expects a high dividend rate of 7.0% per year

 

Maybank Kim Eng has given a “BUY” recommendation on Berli Jucker Public Company Limited (BJC) with a target price at ฿44.00/share.

Maybank stated that despite BJC’s good cost efficiency and SG&A reduction, the impact of the 2nd/3rd wave COVID-19 resulted in a decrease in sales in almost all business segments. Maybank expected to see 1Q21 profit drop YoY, QoQ. However, if no lockdown occurs in 2Q21, earnings are expected to recover YoY due to the low base in 2Q20 and efficiency-driven gains.

BJC’s share price has dropped 9% from the 1st April high reflecting concerns on earnings impact of the 3rd wave infection. Over the longer term, Maybank saw value in BJC and maintained BUY with a DCF-based TP of THB44 (7.1% WACC, 3% G). Maybank saw the current share price dip as an opportunity to accumulate the stock.