SINGER Soars 6% to Hit All-Time High, Analysts Recom. “BUY” over Improving Loan in 2021

The share price of Singer Thailand Public Company Limited (SINGER) rose ฿2.25/share or 6.08% to ฿39.25/share with a trading value of 480 million baht. 

 

KTBST Securities was positive towards SINGER, expecting loan yield from C4C to grow 15-16% and total revenue will increase to 3,000 million baht, up 2,500 million baht YoY as results of the expansion of online platform distribution. Meanwhile, NPLs will drop to 3.4% from 4.4% in 2020 due to a title car growth of 65%, increasing from 52% a year earlier.

 

In addition, KTBST maintained its 2021 earnings forecast at 637 million baht, up 44% YoY to continue the record high, thus, recommending “BUY” on SINGER with a target price of ฿40.00/share.  

 

KGI Securities said after reporting solid loan growth in 2020, SINGER’s short-term earnings momentum has remained strong YTD with acceleration in electrical appliances such as high margin air conditioners. However, this growth should be offset by higher marketing expenses to promote brand awareness. KGI maintained its 2021 earnings forecast but raised 2022 earnings 8% to reflect increased electrical appliance sales. Applying PE of 24x (PEG 1x of. 2-year forward earnings growth) on fully diluted EPS-22, KGI reached a new target price of ฿40.00/share and upgraded rating to Outperform, from Neutral.