Stocks in Focus on June 18, 2021: IVL and HMPRO

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on June 18, 2021.

 

Maybank Kim Eng has given a “BUY” recommendation on Indorama Ventures Public Company Limited (IVL) with a target price at ฿56.00/share.

Maybank stated that IVL has seen tremendous selling pressure over the past month, -12% on worries of PET weakness, G7 tax harmonization and most recently concerns about its ability to finance the deal in Brazil. Maybank believed these concerns are overblown and offer investors an excellent opportunity to accumulate the stock at low risk.

At the current share price, the implied EV/EBITDA and P/E is 8.5x and 13.3x. Furthermore, Maybank estimated IVL will continue to deliver improved earnings QoQ as IOD operation normalizes (polar vortex) and stronger-than-expected fibre recovery, supported by China’s textile industry growth. 1Q21 earnings are likely the lowest for the year.

 

Krungsri Securities (KSS) has given a “BUY” recommendation on Home Product Center Public Company Limited (HMPRO) with a target price at ฿19.00/share.

KSS stated that its cross-channel checks revealed SSSg would reach +10% in 2Q vs KSS’ +5% forecast. However, this would be offset by weaker SSSg in 2H21 as Bangkok reopening is delayed to August and Thailand would only reopen borders to foreign tourists in 1Q22.

KSS maintained a BUY rating for HMPRO as an alternative play on the long-awaited tourism sector recovery that should start in 2022. HMPRO is trading at 26.5x FY22F PE, or -0.5SD of its 5-year mean.