Stocks in Focus on August 4, 2021: TIDLOR and OSP

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on August 4, 2021.

 

Maybank Kim Eng Securities (Thailand) (MBKET) has given a “BUY” recommendation on Ngern Tid Lor Public Company Limited (TIDLOR) with a target price at ฿50.00/share.

MBKET initiated its coverage on TIDLOR with a “BUY” recommendation with a target price at Bt50, based on GGM method (27x PER22, 1x PEG, 19% ROE and 4.6x P/BV). MBKET stated that it preferred TIDLOR due to its strong revenue, supported by higher interest income and fees.

Meanwhile, MBKET saw that TIDLOR has the potential for higher revenue gains compared to its competitors due to its higher-than-average NPL coverage, which leads to a high possibility in lowering provisions and higher GPM.

However, MBKET pointed out that a slower-than-expected revenue growth and a rate cut could post upside risks.

 

Krungsri Securities (KSS) has given a “BUY” recommendation on Osotspa Public Company Limited (OSP) with a target price at ฿40.00/share.

KSS expected OSP’s 2Q21 earnings to increase 5% YoY and drop 16% QoQ to 844 million baht. The increase would be due to a low base in 2Q20 that was impacted by the lockdown measure, while a plummet in QoQ would be due to a lack of 300 million baht of dividend payment, received from Unicharm in 1Q21.

KSS expected 3Q21 earnings to slow down due to the lockdown measure, but seeing a recovery next year, while the current share price is attractive and there could be more upside from its hemp-related products.