Stocks in Focus on April 29, 2021: PTTEP and SCC

Stocks in Focus on April 29, 2021: PTTEP (Krungsri Securities TP at ฿160.00/share) and SCC (Trinity Securities TP at ฿522.00/share).

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on April 29, 2021.

 

Krungsri Securities (KSS) has given a “BUY” recommendation on PTT Exploration and Production Public Company Limited (PTTEP) with a target price at ฿160.00/share.

KSS expected PTTEP’s earnings to accelerate starting 2Q21 onward. The Bt160 per share target price is based on 15x FY21F PE or 20% premium from PE of FY18-19 in which Brent Crude was traded around US$69.40 and US$63.50 per barrel at the time, which was close to KSS’ estimate at US$68.00 per barrel. The 20% premium to PE reflected PTTEP’s sales growth by 12% and 22% in 2021-2022, respectively.

 

Trinity Securities has given a “BUY” recommendation on The Siam Cement Public Company Limited (SCC) with a target price at ฿522.00/share.

Trinity reiterated its BUY rating, but revised up the target price to Bt522.00 per share, based on SOPT method to EV/EBITDA at 11x from an upgraded earnings estimate and higher profit sharing from petrochemical business.

The upgraded earnings in 2021 to 50 billion baht was due to 1) a revised up of petrochemical spread from USD550/ton to USD6000/ton, 2)an increase in sales volume by 7% from MOC project that is expanding its production, and 3) higher profit sharing from JVs to 18 billion baht amid business momentum in an upcycle.