MEGA Rises to All-Time High, Analyst Revises Up 2H21 Earnings Forecast with TP of ฿56

The share price of Mega Lifesciences Public Company Limited (MEGA) rose 8.11% to ฿50.00/share in the morning session on August 24, 2021, marking the company’s all-time high since joining the SET Index, with a trading value of 935 million baht.

As of 15:58 local time in Thailand, MEGA’s share increased ฿2.25/share or 4.86% to ฿48.50/share, with a trading value of 1,295 million baht.

Finansia Syrus Securities (FSS) has given a “BUY” recommendation on MEGA with a target price at 56.00 baht per share.

FSS ranked MEGA as a company with solid fundamentals and revised up earnings estimates after outstanding results in 2Q21 that beat FSS’ expectations, owing to strong demand for over-the-counter medicines and supplements amid a boom in health awareness trends. FSS forecast MEGA to maintain its pace in the second half of the year, supported by seasonality.

Following a better-than-expected performance in 2Q21 and 1H21, FSS estimated MEGA’s 2021 revenue of 13,900 million baht and net profit of 1,700 million baht, mainly boosted by the sales from its Mega WeCare branded products.

 

Thanachart Securities revised up its target price on MEGA from 52.00 baht to 56.00 baht, stating that the company’s pipeline of 10 new products in 2H, which includes green chiretta, a highly-demanded herb-based drug in the market that recommended by Thai doctors for curing Covid-19 patients with mild symptoms. Moreover, MEGA also planned to launch hemp-infused food supplements and more immunity-focused drugs in late 2022, which could have high demand in the market.

Analysts	Rating	Target Price
Finansia Syrus Securities	BUY	56.00 Baht
Thanachart Securities	BUY	56.00 Baht
KTBST Securities	BUY	53.00 Baht
Capital Nomura Securities	BUY	50.00 Baht