Stocks in Focus on May 17, 2021: PTTGC and CPF

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on May 17, 2021.

 

Maybank Kmi Eng has given a “BUY” recommendation on PTT Global Chemical Public Company Limited (PTTGC) with a target price at ฿85.00/share.

Maybank maintained the “BUY” rating on PTTGC, but raised the target price from Bt75 to Bt85, based on 1.2 x FY21E P/B. Maybank raised FY21 EPS by 91% to reflect higher chemical assumptions. Chemical outlook is positive and overall spreads will remain at very healthy levels for FY21 despite some easing in 2H21.

 

Maybank Kmi Eng has given a “BUY” recommendation on Charoen Pokphand Foods Public Company Limited (CPF) with a target price at ฿45.00/share.

Maybank stated that CPF delivered solid 1Q21 earnings, in line with its expectations. 2Q21 profit should remain healthy and grow YoY from the increased sales volume driven by capacity expansion in Thailand, Vietnam, China and higher profits in the Philippine swine operations though it may drop slightly QoQ due to slight moderation in prices. Even after fine tuning earnings to reflect the lower equity income from CPALL, CPF’s earnings should still hit a new record high this year.

Maybank reiterated its BUY rating with a SoTP-based TP of THB45, comprising of CPF (THB28.4) based on 11.5x PER (-1SD of average PE due to its commodity-based business) and CPALL (THB16.6) based on DCF (WACC 7.2%, LTG 4%).