SCGP-OR Edge Higher with Massive Trading Volume following the Inclusion in FTSE All World

SCGP and OR edged higher in the morning session on Monday, May 24, 2021, with a massive combined trading value.

The share price of SCG Packaging Public Company Limited (SCGP) rose ฿0.75/share or 1.30% to ฿58.25/share, with a trading value of 1,224 million baht.

Meanwhile, the share price of PTT Oil and Retail Public Company Limited (OR) rose ฿0.25/share or 0.85% to ฿29.75/share, with a trading value of 967 million baht.

 

Following their inclusion in the FTSE All World Index, Capital Nomura Securities (CNS) recommends investing in SCGP and OR.

 

CNS has set a target price of 60.00 baht per share for SCGP, anticipating inflows of approximately 75 million dollars or approximately 2.47 billion baht. The CAGR between 2021-23 is expected to be +16%.

SCGP is a steadily growing company and the largest packaging manufacturer in ASEAN. SCGP still has room to grow, contributing by changing customer behavior toward e-commerce and food delivery.

Earnings are expected to continue to grow year over year in 2Q21, while full-year net income is projected to reach 9,068 million baht, or +40%, due to production expansion and revenue recognition from SOVI and Go-pak. SCGP’s share price has an upside of approx. 3 baht per share as a result of the acquisition of Vietnam’s Duy Tan and 1 baht per share from the acquisition of Indonesia’s Intan.

 

CNS, on the other hand, recommends “Speculative-Buy” rating on OR. The company is predicted to receive approximately 90 million dollars in inflows following its inclusion in the FTSE All World Index. CNS expects OR’s 2021 net profit to be 10 billion baht, or +14%, due to its industry-leading position in the gas station market.