Following the report of SCGP’s outstanding 1Q21 earnings at 2,134 million baht, representing an increase of 23.24% YoY mainly due to an increase in total revenue from sales, analysts have published an analysis afterward with a target price as high as Bt60 per share.
Maybank Kim Eng has given a “BUY” recommendation on SCG Packaging Public Company Limited (SCGP) with an upgraded target price to ฿58.00/share.
Maybank expected the business expansion and strategy that resulted in positive gross profit would also give a boost to SCGP for the remainder of the year. The executive maintained an estimated 2-digit growth rate to over 100 billion baht and also budgeted 20 billion baht to support future growth.
Maybank revised up sales revenue and normalized profit in 2021 by 20.6% and 33%, respectively.
In this regard, Maybank upgraded SCGP’s target price from Bt51 to Bt58 per share, based on WACC 8% and L-T terminal growth at 2%.
Krungsri Securities (KSS) revised up SCGP’s 2021-2023 net profit to 16%, 15%, 14%, respectively, due to an increase in profit margin by 1.5ppt of its three IPC products in 2021-23 to 21.5%, 22.3% and 24.3%, respectively. The increase will result in an increased EBITDA in 2021-23 by 1.3ppt to 18.8%, 19.3% and 21.5%, respectively.
KSS revised up SCGP’s target price to Bt60.00 per share.