SAWAD Jumps 8% to Bt83.50 as Analyst Raises TP to Bt101 over ฿300Mn One-Time Gain in 1Q

The share price of Srisawad Corporation Public Company Limited (SAWAD) jumped ฿6.00/share or 7.74% to ฿83.50/share as of 10:33 local time in Thailand with a trading value of 893 million baht.

 

KGI Securities cited the guidance from SAWAD’s management, which indicated the new platform being set up will enable the company to cope with intensifying yield competition and help it improve loan yield.

SAWAD sold its 49% equity stake in subsidiary Lyern-Sof-Tun-Jai to Government Savings Bank (GSB) to form a JV lending platform for GSB’s customer base. The company is likely to book an investment gain of around Bt300mn in 1Q21 and lending on the new platform could begin around 2Q21. The investment gain will boost SAWADs earnings growth around 4% in 2021.

 

In addition, KGI raised its 2021/2022 earnings forecasts 5% each year and re-rate PE multiple to 20x (up from 18.5x) of 2022F earnings, reaching a new target price of Bt101, from Bt71.00, maintaining a rating of Outperform.