DBS Vickers Selects 3 Stocks with All-Time High Earnings Outlook in 2021

The United States reported the weaker-than-expected May jobs data, showing that the US economy has added only 559,000 non-farm jobs, somewhat less than the consensus estimate of 671,000 jobs. However, the unemployment rate declined by 0.3% to 5.8%.

Joe Biden is set to propose a US$1.7 trillion infrastructure plan within this week. Meanwhile, the European Central Bank (ECB) is expected to maintain its current monetary policy at its upcoming meeting.

At the same time, Iran is unlikely to begin producing crude oil anytime soon.

According to DBS Vickers Securities (DBSVS), these issues could weigh on the Thai stock market this week. Coupled with domestic factors such as the nationwide distribution of vaccines and a new stimulus package that includes debt relief for retailers and small businesses.

As a result, DBSVS has selected 3 stocks for investing this week;

 

DCC : “BUY” rating and target price of ฿3.40/share with 9% upside

Dynasty Ceramic Public Company Limited (DCC) is predicted to report an all-time high profit in 2021, following a record net income of 493 million baht in 1Q21 (+34%YoY, +36%QoQ). DBSVS expected DCC to benefit from the government’s stimulus plan, which intends to boost public spending. As a result, DCC’s momentum will continue for the rest of this year.

Net profit is expected to increase by +18% in 2021 and then by 10% in 2022. DBSVS elevated DCC to the ceramic sector’s top pick due to its 2021 earnings outlook.

 

SPALI : “BUY” rating and target price of ฿24.70/share with 15% upside

Supalai Public Company Limited (SPALI) is anticipated to have the property sector’s greatest 2021 earnings outlook this year. SPALI has a backlog of 38.8 billion baht as of end-March, implying continuing revenue growth in 2021. Additionally, revenue earned from operations is projected to increase following the launch of an aggressive promotion.

Net profit is predicted to expand by +38% YoY, outpacing the sector average of +13YoY.

 

TISCO : “BUY” rating and target price of ฿110.00/share with 22% upside

Tisco Financial Group Public Company Limited (TISCO) is forecasted to hand out the highest dividend yield in the banking sector due to its strong financial position and effective management. Furthermore, TISCO planned to invest in a digital platform to meet the growing need for data-related services. This will also contribute to future reductions in the C/I ratio.