RBF to Return Safe and Sound, Analyst Recommends “BUY” with TP of ฿22.9
DBS Vickers Securities anticipates that RBF's revenue will recover substantially in the second half of this year as the Covid-19 vaccine will be widely distributed and one of its hotels business is sold.
In 1Q21, R&B Food Supply Public Company Limited (RBF) reported the profit for the period of 75.02 million baht, equaled to 8.84% of the total revenue from operations, and decreased by 72.32 million baht (YoY -49.08%) compared to 1Q20, which profit for the period was 147.34 million baht or 18.24% of the total revenue from operations.
The decline in net profit was mainly due to a decline in the gross profit margin of seasoning sales and hotel operations, as well as a rise in selling and administrative expenses. It was, in general, a result of the Covid-19 pandemic.
However, DBS Vickers Securities (DBSVS) anticipates that RBF’s revenue will recover substantially in the second half of this year as the Covid-19 vaccine will be widely distributed and one of its hotels business is sold.
DBSVS decreased RBF’s revenue growth forecast for 2021 to 10%, but increased the growth outlook to 19% in 2022 to accommodate for the potential of the hemp-related industry, which is scheduled to begin operations in early 2022.
As a consequence, DBSVS revised up a recommendation from Hold to BUY with a new target price of 22.90 baht per share.