Stocks in Focus on October 28, 2021: NER and CENTEL

Stocks in Focus on October 28, 2021: NER (Maybank Kim Eng Securities TP at ฿9.00/share) and CENTEL (KTBST Securities TP at ฿42.00/share).

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on October 28, 2021.


Maybank Kim Eng Securities (Thailand) (MBKET) has given a “BUY” recommendation on North East Rubber Public Company Limited (NER) with a target price at ฿9.00/share.

MBKET expected NER’s 3Q21 profit to standout at 441 million baht (+0.6% QoQ+189.7% YoY) from sales of processed rubber products of125k tonnes (+7.6% QoQ +17.6%YoY) and next year will be further supported by the downstream business “Cowpads”. The share is currently trading at 6.8x PE2022.


KTBST Securities (KTBST) has given a “BUY” recommendation on Central Plaza Hotel Public Company Limited (CENTEL) with a target price at ฿42.00/share.

KTBST raised the target price of CENTEL to Bt42.00 from Bt34.00 based on DCF (WACC of 7.6% and terminal growth of 2.5%), rolling forward its valuation base to 2022E. KTBST forecasts a 3Q21E net loss of Bt716mn, narrowing from Bt897mn in 3Q20 but worsening from Bt606mn in 2Q21. A significant improvement YoY would contribute to the resumption of its Maldives hotels from July after the borders have been fully opened to tourists. A deeper loss QoQ would be due primarily to a 1.5-month shut off of restaurants in department stores in the COVID-19 dark red zone.

KTBST cut 2021E earnings by 12% to a deeper loss of Bt2.2bn, narrowing compared to Bt2.8bn, to reflect the shut down of in-store restaurants in the dark red zone. In 4Q21E, the securities company foresee improvement YoY, QoQ as 1) the quick service restaurant (QSR) business has resumed the operations, and 2) the hotel business will embrace the high season in Maldives and Thailand.

CENTEL has gained 2% over the past month and thereby outperformed the SET Index by the same level on earnings optimism after the government lifted the quarantine requirements for 46 countries sooner than expected. The hotel and QSR businesses are expected to rebound following the country’s border reopening. Among KTBST covered tourism stocks, CENTEL has the healthiest cash flow and balance sheet with a net D/E of just 0.6x.

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