GLOBAL Increases 3% after a Record High in 1Q Earnings, CNS Expects to Outperform Peers

GLOBAL jumped as much as 7.6% after a recod high in 1Q earnings. CNS expected GLOBAL to outperform its peers, giving a TP at Bt28 per share.

The share price of Siam Global House Public Company Limited (GLOBAL) rose ฿0.70/share or 3.12% to ฿23.10/share with a trading value of 575 million baht as of 11:58 local time in Thailand. The share price rose as high as ฿24.10/share earlier, representing an increase by 7.59%.

 

Capital Nomura Securities (CNS) gave a “BUY” recommendation on GLOBAL with a target price at ฿28.00/share with a slight positive view after the 1Q21 earnings hit a record high at 966 million baht, which was higher than CNS’ estimation by 16% YoY and 25% QoQ.

The increase in net profit in 1Q21 was due to higher sale price and steel price that boosted SSSG and EBITDA margin to increase. CNS expected the momentum to continue in 2Q21 from sales in provincial areas and higher steel price that is expected to increase til 3Q21, along with the positive sentiment from the vaccine rollout in the remainder of this year.

CNS revised up 2021-22 earnings by 7% and 2%, respectively, to 3,000 million baht and 3,200 million baht, respectively, and outperformed the retail sector.

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