AMR Asia Public Company Limited (AMR) closed the morning session on its first trading day at ฿7.65/share, increased ฿0.75/share or 10.87% with a trading value of 1,752 million baht.
Trinity Securities has given a “BUY” recommendation on AMR with a target price at ฿9.76/share.
Trinity Securities evaluated the fair value of AMR in 2021 at ฿8.58/share and 2022 at ฿9.76/share, based on PE 26x, compared to its peers in international markets at a PE of 32x. Trinity Securities estimated AMR’s EPS in 2021 at ฿0.33/share and 2022 at ฿0.38/share, excluding an upside from the utilization plan of its IPO funding to further its business.
Trinity Securities expected AMR’s revenue and earnings to grow continuously from the gradual revenue recognition from its on-hand projects and more projects to come from the bidding. AMR’s backlog and front log in 2021-2023 are expected to be more than 8,000 million baht, following the industrial growth. The company also recognized recurring income from its expansion of maintenance services to diversify the business and stabilize the expenses.
Trinity Securities estimated an 8.3% growth at the CAGR 2020-2023 and 2020-2023 earning growth at 7.4%, citing its gross profit margin of 18.3% and 20.6% in 2019 and 2020, respectively.
AMR stated that it expected to use the proceeds from the offering to 1) develop the transportation, energy and smart city businesses, 2) use as funds for research and development in services and technology enhancement, and 3) use as working capital.