MBKET Selects 6 Stocks with a New High Profit Outlook in 2Q amid Market Volatility

Maybank Kim Eng Securities (MBKET) recommends six stocks that are expected to report record earnings in 2Q21, despite market volatility due to the Covid outbreak. 

Due to the increasingly severe Covid-19 outbreak in Thailand at present, this makes the stock market investment situation quite difficult. MBKET, however, stated that this is the time of the 2Q21 earnings results report, so it is a good opportunity to gradually accumulate stocks with strong earnings growth prospects when the market is weakening.

Fifteen companies that MBKET forecast the profits to hit new highs amid serious Covid-19 situation, including BCH, CHG, DOHOME, FTREIT, KTC, LEO, MCS, MTC, NER, SINGER, SIS, SONIC, VL, WICE and ZIGA. Among this, MBKET expects SINGER, SIS and MCS to make the All Time High. As a result, these are stocks worth accumulating.

In 2Q21, Sonic Interfreight Public Company Limited (SONIC) is projected to report a record profit of 39 million baht, up 487%. So MBKET maintains a target price on SONIC at 5.25 baht.

Wice Logistics Public Company Limited (WICE) would report new high earnings of 92 million baht, up 66.8%. A target price is given at 11.80 baht.

Singer Thailand Public Company Limited (SINGER)’s 2Q21 profit is expected to hit a new record of 180 million baht, (+30%QoQ, +60%YoY), due to product sales still growing at 20% YoY and strategy to focus on more online channels, as well as the growth of HP-C4C loans. Asset quality remains strong as the economy in the provinces is less affected than in the cities. Strategic target price is 50 baht.

M.C.S.Steel Public Company Limited (MCS)’s 2Q21 profit is foreseen to be outstanding and hit a new record high of  320 million baht (+37%QoQ, +42%YoY) driven by various deliveries of structural steel works and outstanding works in 1Q21 to be included for delivery in this quarter. The backlog rose to 100,000 tonnes. The share price trades on low FY2021 P/E of 6.7x, with a dividend yield of 8.2%. Strategic target price is 18.50 baht.

Meanwhile, MBKET expects SIS Distribution (Thailand) Public Company Limited (SIS)’s 2Q21 profit at 195 million baht (+2%QoQ, +33%YoY), reaching new highs for the fifth consecutive quarter, due to the demand for computers, smartphones and also the upside risk from the Covid-19 situation that is more severe than expected. This causes the work from home to be extended, which is expected to support strong purchasing power until the end of the year. Strategic target price is 45 baht.

Additionally, Ziga Innovation Public Company Limited (ZIGA) is expected to report a record earnings of 44 million baht, up 54.5%.