Analysts Recommend “BUY” on SCGP with a TP of Bt60 after an Outstanding 1Q Earnings

After an outstanding report of 1Q21 earnings by SCGP, abalysts have upgraded their estimations and target price to as high as Bt60.

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.

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