Stocks in Focus on September 7, 2021: COM7 and ZEN

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on September 7, 2021.

 

Maybank Kim Eng Securities (Thailand) (MBKET) has given a “BUY” recommendation on COM7 Public Company Limited (COM7) with a target price at ฿82.00/share.

MBKET stated that sales and profits of COM7 will recover from 4Q21 onwards driven by; 1) Easing of control measures, leading to reopening of department stores in September, 2) new products gradually launched, which are expected to be well-received because purchasing power in the middle-upper market is still strong, 3) Good cost control will help boost margin.

 

KGI Securities has upgraded Zen Corporation Group Public Company Limited (ZEN) from “Neutral” to “Outperform” with a target price of ฿17.70/share.

KGI stated that ZEN has adjusted its business models to enhance long-term growth and profitability by i) adapting restaurant models, ii) improving delivery sales and developing its own delivery apps, iii) expanding retail sales, and iv) continuing to expand its franchises under the “Khiang” brand.

With an impressive long-term earnings growth story (earnings recovery from loss of Bt46mn in 2021F to a net profit of Bt176mn in 2022F and further growth of 27% in 2023F), ZEN deserves to trade at a premium valuation of PE 30x, comparable to its peer MK Restaurant Group Public Company Limited (M).