Stocks in Focus on July 22, 2021: RBF and KBANK

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on July 22, 2021.

 

Maybank Kim Eng Securities (Thailand) (MBKET) has given a “Speculative BUY” recommendation on R&B Food Supply Public Company Limited (RBF) with a target price at ฿22.60/share.

MBKET estimated RBF to report 2Q21 earnings at 145 million baht, representing an increase by 37% YoY and 4% QoQ. The flat earnings in QoQ is due to the Covid-19 impact and GPM at a lower than normal level due to container shortage, which resulted in higher material cost.

As for the 2H21 outlook, MBKET expected a gradual recovery, while not burdening from its business hotel due to earlier disposal. In addition, MBKET stated that RBF has priced in the positive factor from hemp business, causing a limited upside to the target price.

 

Asia Wealth Securities (AWS) has given a “BUY” recommendation on Kasikornbank Public Company Limited (KBANK) with a target price at ฿177.00/share.

AWS stated that KBANK’s 3Q21 earnings outlook is positive QoQ and YoY, driven by continued interest income growth and stable provisioning, while measures to help debtors of the government sector will affect earnings forecasts rather limited. Previously, KBANK reported a 2Q21 net profit of Bt89bn, a decrease of 16%QoQ but an increase of 309%YoY which the NPL Ratio in 2Q21 was at 3.95%, stable from the end of 2020 while the Coverage Ratio was 154.1%, up from 149% at the end of 2020.