Stocks in Focus on May 5, 2021: SAT and LEO

Stocks in Focus on May 5, 2021: SAT (Maybank Kim Eng TP at ฿22.50/share) and LEO (Trinity Securities TP at ฿8.20/share).

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on May 5, 2021.

 

Maybank Kim Eng has given a “BUY” recommendation on Somboon Advance Technology Public Company Limited (SAT) with a target price at ฿22.50/share.

Maybank expected SAT’s 1Q21 profit to stand out at 255 million baht (+5% QoQ, 34% YoY), the highest in 8 quarters, due to better than industry sales growth and higher gross margins. Maybank raised SAT’s target price to Bt22.50 from Bt20 per share, on 11.6x PE and +0.5 SD. With the share price trading on 10x P/E 2021E and a dividend yield of 6.5%.

 

Trinity Securities has given a “BUY” recommendation on Leo Global Logistics Public Company Limited (LEO) with a target price at ฿8.20/share.

Trinity Securities estimated LEO’s 1Q21 profit growth at 126% YoY and 46% QoQ, buoyed by positive momentum of traffic and freight rate. Estimated gross margin should be around 25%, which is close to 4Q20, but dropped from 31% in 1Q20 due to the higher global freight rate recently, but the company still maintained its rate at the same level.

Nevertheless, Trinity indicated that the best earnings would be in the third quarter this year due to being its peak in sea freight business. In addition, Trinity estimated a net profit in 2021 at 71 million baht.