Stocks in Focus on November 16, 2020: RBF and SPA

Stocks in Focus on November 16, 2020: RBF (KGI Securities TP at ฿11.00/share) and SPA (KGI Securities TP at ฿9.50/share).

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on November 16, 2020.


KGI Securities has upgraded its rating on R&B Food Supply Public Company Limited (RBF) from “Neutral” to “Outperform” with a revised up target price to ฿11.00/share.

KGI stated that RBF posted a strong 3Q20 core profit of Bt149mn (+40.7% YoY, +40.0% QoQ), topping KGI’s estimate by 21.5% and the consensus by 14.6%, thanks to higher-than-expected sales and stronger-than-expected GPM.

KGI revised up core earnings estimates by 4.7%-5.7% in 2020-2022 to reflect the rising revenue trend and associated operational efficiency. KGI expected RBF to capitalize on higher competition in the domestic F&B industry and improved run rates at its overseas plants.


KGI Securities has given an “Outperform” rating on Siam Wellness Group Public Company Limited (SPA) with a target price at ฿9.50/share.

KGI stated that SPA reported a 3Q20 net loss of Bt55mn (improving from a net loss of Bt81mn in 2Q20), beating expectations by 8%. Earnings momentum improved following the easing of lockdown restrictions since June 2020 resulting in a QoQ recovery in top-line and profitability.

Meanwhile, D/E in 3Q20 (excluding TFRS 16) remained at a comfortable level of 0.31x, far below its debt covenant of 1.5x. KGI reiterated a long-term positive view as earnings momentum remains on track to achieve a gradual pace of recovery, while progress on a COVID-19 vaccine should act as a key catalyst.

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