Stocks in Focus on July 15, 2021: SCC and TPIPP

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on July 15, 2021.

 

Maybank Kim Eng Securities (Thailand) (MBKET) has given a “BUY” recommendation on The Siam Cement Public Company Limited (SCC) with a target price at ฿520.00/share.

MBKET expected SCC’s 2Q21 earnings at 15,000 million baht, a record high in 17 quarters, representing a 1% growth QoQ and 60% growth YoY. The increase would be mainly due to its petrochemical business that the new production capacity from the MOCD project will increase its sales volume to 500 billion tonnes. Meanwhile, the spread from HDPE, PP and PVC in 2Q21 is also at a high level.

 

Maybank Kim Eng Securities (Thailand) (MBKET) has given a “BUY” recommendation on Tri Polene Power Public Company Limited (TPIPP) with a target price at ฿5.00/share.

MBKET expected 2Q21 profit to improve THB1.2b (+13%QoQ, +2%YoY) from higher electricity sales. The outlook for the rest of the year, earnings will be better, driven by sale of RDF to TPIPL, winning bid for 2 waste power plants, namely Songkhla (8MW) and Nakhon Ratchasima, (9.9MW) is preparing to sign in 3Q21 and the TG7 (40MW) power plant is submitting electricity sales to EGAT.

These will increase EBITDA by THB1.2b and help offset TG3 (18MW) and TG5 (55MW) that gradually run out of adder in 2022. The share trades at a low P/E of 7.7x and good dividend yield of 6.5%.