Kaohoon’s Top News on August 17, 2021

– R&B Food Supply (RBF) has entered into a contract with a subsidiary of Osotspa (OSP) to purchase hemp oil for the purpose of producing beauty and body care products. Additionally, the business revealed that it is now receiving 6-7 orders for CBD-THC extracts. RBF reported a net profit of 182.97 million baht for the first half of this year, a decrease of 28.60% due to higher costs. However, it confirmed that sales in 2021 will reach the company’s 10-12% growth target.

– Asia Plus Securities (ASPS) recommended investing in 11 mid-to-big cap stocks with a P/E ratio of less than 15x, a high dividend yield, and solid fundamentals amid market volatility, lead by STA, STGT, AP, SPALI, NER, CPF, TVO, EGCO, RATCH, PTT, and LH.

– Ratch Group (RATCH) is confident that it will outperform expectations this year. RATCH is currently in negotiations to invest in a 970 megawatt power plant and expects to conclude 1-2 deals by the end of the year. Additionally, the company anticipates acquiring more mega projects by the middle of next year and is advancing its 30 billion baht capital increase plan to support the investment expansion plan in 2021-2022.

– Srisawad Corporation (SAWAD) recorded a net profit of 1,106 million baht in 2Q21, up 12.61%, and 2,467 million baht in 1H21, up 22.43%. Analysts noted that the reduction of debt collection fees has a negligible effect on banks and financial groups as it is not a major source of revenue, citing banks earn only 1% of their revenue from collection fees.

– Following a boom in e-commerce business, NR Instant Produce (NRF) increased its sales target for 2023 to 4,000-5,000 million baht from 3,000 million baht originally. The company has set aside around 2,000 million baht for investment over the next two years, reiterating that revenue will increase by 50% this year. NRF hopes to benefit from a weaker baht and increased exports in 3Q21, while the hemp business aims to sell CBD in 1Q22. In terms of plant-based food, a joint venture with PTT, is expected to begin production in 3Q22.

– Absolute Clean Energy (ACE) and Sermsang Power Corporation (SSP) both performed excellent in the second quarter of this year. ACE reported a net profit of 366.5 million baht, a 46.7% increase, and expects to begin COD of the Khlong Khlung VSPP soon. Meanwhile, SSP reported a net profit of 240 million baht, up 60%, and plans to begin COD of a 48MW wind farm in Vietnam in 4Q21.