Stocks in Focus on June 23, 2021: SFT and AP
Stocks in Focus on June 23, 2021: SFT (KGI Securities TP at ฿8.00/share) and AP (Maybank Kim Eng Securities TP at ฿9.80/share).
Kaohoon Online has selected stocks with a high-growth potential for investors to consider on June 23, 2021.
KGI Securities has given an Outperform rating on Shrinkflex (Thailand) Public Company Limited (SFT) with a target price at ฿8.00/share.
KGI Securities initiated coverage on SFT with a rating of Outperform and end-2022 target price of Bt8.00 based on PER 25.0x (+1.0 S.D historical global peers). KGI expected the company to see attractive earnings growth of 28% 3-year CAGR on the back of 18% sales growth p.a on a positive industry outlook. This would allow SFT to enjoy the benefits from economies of scale, improving its gross margin.
Maybank Kim Eng Securities (Thailand) (MBKET) has given a BUY recommendation on AP (Thailand) Public Company Limited (AP) with a target price at ฿9.80/share.
MBKET expected 2Q21 earnings to strongly grow YoY with acceleration in new projects launched in 2H21 worth a total 40 billion baht (16 projects in 3Q21 and 12 projects in 4Q21). This should add to the backlog significantly. The share price is trading on 6x PE with a dividend yield of 5.5%, making it more attractive.