Stocks in Focus on August 13, 2021: EPG and KCE

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on August 13, 2021.

 

Krungsri Securities (KSS) has given a “BUY” recommendation on Eastern Polymer Group Public Company Limited (EPG) with a target price at ฿16.00/share.

KSS stated that EPG continues to see strong orders for all three products. Only domestic rubber insulation sales may soften due to the lockdown. But this accounts for 26% of rubber insulation sales or 7% of group revenue.

Meanwhile, weak THB against US dollars is an operational tailwind, given that EPG derives 60% revenue from export. Packaging should show record sales in 2Q (Jul-Sep) given solid purchase orders in the pipeline.

Rubber insulation sales should grow in 2HFY21/22, led by the start-up of a new line in the US (+4k to 8k tons in total) in August and recovery of domestic consumption. We recommend BUY and TP at Bt16.0/sh, implying 26.5x/24.4x FY22/23F PE.

 

Asia Wealth Securities (AWS) has given a “BUY” recommendation on KCE Electronics Public Company Limited (KCE) with a target price at ฿95.00/share.

AWS expected KCE’s 2H21 earnings to continue to grow and have better profit margin than 1H21, revenue growth from increased production capacity and Thai baht depreciation, so AWS revised its earnings forecast for 2021-2022 up 14% and 19%.

Previously, the company reported 2Q21 net profit growth YoY and QoQ and better than market consensus 17%, also will pay an interim dividend of Bt0.60 XD 23 Aug and paid 8 Sept, recommend “Buy” with a new target price of Bt95.