Stocks in Focus on September 10, 2021: APURE and MAJOR

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

 

FSS International Investment Advisory Securities Co., Ltd. (FSSIA) has given a “BUY” recommendation on Agripure Holdings Public Company Limited (APURE) with a target price at ฿12.00/share.

FSSIA stated that it saw three catalysts driving net profit growth at 29.4% CAGR over 2020-23, comprising 1) a large order from its new US customer, Walmart, to double sales volume; 2) a new market in Europe; and 3) the pouch products targeted for sales in Japan and Korea. Also, the solid projected revenue growth would be aligned with a GPM expansion due to higher utilisation rates, efficient cost management and its new can manufacturing plants.

 

Krungsri Securities (KSS) has given a “BUY” recommendation on Major Cineplex Group Public Company Limited (MAJOR) with a revised up target price at ฿28.00/share.

KSS stated that 61 cinemas have reopened in 33 provinces and expected a full reopen on October 1, 2021, based on the government’s time frame. Meanwhile, there are a lot of blockbuster movies lined up to premier in the cinema such as Fast & Furious 9, Black Widow, Spider Man and No Time to Die (James Bond 007).

MAJOR expected to record 7.7 billion baht (7.5 billion after tax) in 3Q21 through the sale of SF in which 30% of the income will be used for debt repayment, 28% for working capital and 41% for investment.

KSS expected core business in 3Q21 to record a net loss due to the closures, but will book 2.8 billion baht from extraordinary items, while estimated that the performance in 4Q21 will turn positive from reopening and blockbuster movies.

As for the overall outlook in 2021, KSS expected MAJOR to record 86 million baht of net loss, and will record 1.1 billion baht of profit in 2022 with a dividend payment from retained earnings around 5%-11%.