Stocks in Focus on November 8, 2021: ILM and SPRC
Stocks in Focus on November 8, 2021: ILM (Capital Nomura Securities TP at ฿18.20/share) and SPRC (Kasikorn Securities TP at ฿14.00/share).
Kaohoon Online has selected stocks with a high-growth potential for investors to consider on November 8, 2021.
Capital Nomura Securities (CNS) has given a “Trading BUY” recommendation on Index Living Mall Public Company Limited (ILM) with a target price at ฿18.20/share.
CNS had slight positive outlook on ILM’s 3Q21 earnings at 56 million baht (-62% YoY and -45% QoQ), which was higher than what CNS and the market had expected and estimated that the decline should bottom out in 3Q.
CNS noted that SSSG in October grew 17%, compared to the third quarter of 2021 that fell 20%, while the rent fee was close to the pre-lockdown level. The securities companies estimated 4Q21 earnings to grow 151% QoQ from online channels and efficient cost management. The earnings should be close to the same period of last year.
CNS slightly revised up 2021-2022 earnings by 1-2% on lower interest, expecting 2022 earnings to grow 33%, which would outperform other home decoration stocks due to new expansion, online sales, rent fee and cost management. The current PEG is lower than 1x.
Kasikorn Securities (KS) has given a “BUY” recommendation on Star Petroleum Refining Public Company Limited (SPRC) with a target price at ฿14.00/share.
KS revised up SPRC 2021 earnings growth by 97% from inventory gain and increased 2022 earnings by 12% and 2023 by 16% on anticipation of rising refinery margin. The securities company expected weak 3Q21 earnings, declining YoY and QoQ due to the refinery margin at a lower level of break even point, but is expected to recover in 4Q.