Perfect Chance to Pick ORI Up! Analysts Expect Higher Growth in 2H, Giving TP at ฿10.06

Origin Property Public Company Limited (ORI) has been on the radar of investors for quite some time while the majority of security companies also have a positive perspective on ORI. From the research, ORI has a considerably high dividend yield at 5.09% as of June 11, 2019 while its P/E is at 5.21x, lower than its sector’s P/E at 14.68x and SET’s 17.99x.

 

Kasikorn Securities (KS) stated that ORI is maintaining its 2019 presales and revenue targets at Bt28bn and Bt19bn (including sales revenue of Bt17bn) despite achieving only 20% and 18% of these figures in 1Q19.

2019 new projects, the value of which has been raised from an initially planned Bt26bn to Bt27.3bn (90% of this amount will be opened in 2Q- 4Q) and a backlog of Bt34.1bn, of which Bt9.5bn is scheduled to be transferred in 2019, will support its pursuit of these targets.

Based on these plans and the schedule for the transfer of its backlog, ORI is aiming for its operating performance to improve every quarter in 2019. KS gives a “buy” recommendation with a target price at ฿11.10/share.

Meanwhile, KT Zmico has reiterated its “buy” recommendation at the target price of ฿9.40/share, expecting 3Q-4Q normalized profit to improve when more completed projects are ready to transfer in the periods. Moreover, KT Zmico has also stated that the 2020E normalized profit should grow 20.5% YoY after four JV condos start transferring from 1Q20‐4Q20E.

According to the consensus, there are 10 buy recommendations, 0 sell, and 0 hold. The consensus recommends the target price of ORI at ฿10.06/share.

 

ORI closed the morning session on June 13, 2019, at ฿7.65/share, increased ฿0.15/share or 2% with a trading value of THB 76.8 million.