Stocks in Focus on July 1, 2021: GLOBAL and KTC

Stocks in Focus on July 1, 2021: GLOBAL (TP at ฿26.00/share) and KTC (TP at ฿90.00/share).


Kaohoon Online has selected stocks with a high-growth potential for investors to consider on July 1, 2021.

 

Maybank Kim Eng Securities (Thailand) (MBKET) has given a “BUY” recommendation on Siam Global House Public Company Limited (GLOBAL) with a target price at ฿26.00/share.

MBKET expected 2Q21 earnings to skyrocket 78% YoY to 902 million baht, the second best earnings after the all-time high in 1Q21. This is attributed to both sales and gross margins expansion. Even though steel prices began to decline, the 3Q-4Q21 earnings are expected to continue to grow YoY.

MBKET saw a possibility to review its forecasts to reflect strong operating performance. As the share price weakened, leading to a 26% upside to the target price (DCF) of THB26, while upgrading the stock rating from TRADING BUY to BUY.

 

KTBST Securities (KTBST) has given a “BUY” recommendation on Krungthai Card Public Company Limited (KTC) with a target price at ฿90.00/share.

KTBST stated that a target price of Bt90.00, which is pegged to 2022E PBV of 7.4x, or +3 SD above its 3-yr average. KTBST forecasted 2Q21E net profit to grow +42% YoY but to remain flat QoQ at Bt1.63bn. Credit cost is predicted to 588 bps, from 992 bps in 1Q20, given high loan-loss provision. Additionally, total loan, excluding KTBL, is estimated to increase +5% YoY with credit card loans to rise +8% amid a decrease in personal loans of -2% YoY.

KTBST maintained 2021E/2022E net profit forecast at Bt6.38bn (+20% YoY)/Bt7.44bn (+17%). First, total loan is projected to increase by each +8% YoY on stronger consumer spending power and loan ecosystem. KTC will begin introducing KTBL in 3Q21E. Last, credit cost is predicted to decrease to 606/455 bps with NPL ratio expected to remain flat at 1.4%/2.7% on the back of the strict loan approval policy and a focus on secured loans.

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