Stocks in Focus on June 21, 2021: KBANK and MEGA

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on June 19, 2021.

 

KGI Securities has given an “Outperform” rating on Kasikornbank Public Company Limited (KBANK) with a target price at ฿182.00/share.

KGI Securities stated that despite the weaker domestic economy pressuring asset quality, assistance measures from the Bank of Thailand will enable the bank to manage its NPLs and credit cost and take longer to resolve asset quality.

With tough market conditions, KGI believed the bank will be able to grow fee income from the capital market, which should help 2Q21 core earnings grow marginally QoQ and YoY. Regarding concerns about capital market pull: back, KGI expected KBANK’s undemanding valuation at PE 8x and PBV at 0.6x, nearly :2SD, and ROE assumption around 8% will justify a fair PBV of 0.9x.

 

Maybank Kim Eng has given a “BUY” recommendation on Mega Lifesciences Public Company Limited (MEGA) with a target price at ฿40.00/share.

Maybank stated that the main business trend is expected to continue to grow well as people turn to care more about their health. This should support sales of health supplements and vitamins, combined with the opportunity to release hemp-related products in the next period, which is waiting for legal clarity from the government. This would become an upside in the next period