LEO Expects a 25% Growth in 2020 Revenue, Analyst Recomm. “BUY” at ฿7.30

LEO signalled for outperforming earnings in 2021, expecting an increase by 20-25% in revenue to consecutively make a new high from 2020 due to higher traffic in air and sea freight transportations. The analyst recommended “BUY” at a target price at ฿7.30/share. The company’s shares also had a high turnover that the Stock Exchange of Thailand put LEO into a “cash balance” measure, starting 18 Jan. – 25 Feb.

 

Mr. Kettivit Sittisoontirnwong, Chairman of the Executive Committee of Leo Global Logistics Public Company Limited (LEO), revealed that the total imports and exports so far this year to surpass 2020’s figure which will support the growth of company’s services such as sea freight, air freight and integrated logistics services (ILS). 

 

For the Leo Self Storage (LSS), the company is still able to offer full services and strongly believes that the profit in 3Q21 will show outstanding growth due to service area expansion from 1,200 m2 to 3,200 m2. In regard to mergers and acquisitions (M&A), LEO is now under negotiation and expects the deal to be complete within this year as planned.

 

Mr. Kettivit also affirmed that the 2020 performance will go as planned, targeting total revenue to exceed 2019 levels of 1,062.31 million baht, as well as a net profit that expects to hit a new high. LEO already recorded a revenue and earnings of 200.38 million baht and 42.88 million baht, respectively, for the nine-month period.  

 

KTB (Thailand) Securities (KTBST) has given a “BUY” recommendation on “LEO” and revised up a target price to ฿7.30/share from ฿7.00/share and improves the 2021 core net profit forecast by 8% to 94 million baht, an increase of 39% YoY due to higher traffic in air and sea freight transportations.

 

Meanwhile, estimating 4Q20 earnings to make a record high of 24 million baht, a 242% growth YoY, in line with a new high revenue of 334 million baht, an increase of 34% YoY, as sea freight and air freight volume and prices have shown a significant growth after lockdowns have been lifted in many countries.

 

However, LEO has been imposed by the “cash balance” measure under the turnover list of the Stock Exchange of Thailand’s policy, starting January 18, 2021 – February 25, 2021.