Stocks in Focus on September 20, 2021: IVL and GFPT

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on September 20, 2021.

 

KGI Securities has given an “Outperform” rating on Indorama Ventures Public Company Limited (IVL) with a target price at ฿57.00/share.

KGI estimated IVL to post 2022 earnings of 21.2 billion baht (62% YoY) due primarily to i) materially lower stock gain of around Bt500mn in 2022, down 92% YoY from 6.5 billion baht in 2021 and ii) no extra income of 1.3 billion baht from its assets in Brazil.

Excluding stock gain/loss and extra items, KGI forecast IVL’s core earnings to climb 40% YoY in 2022 thanks to i) sales volume jumping 11% YoY to 16.3 million tons next year and ii) first-year anticipated earnings contribution of 3.2 billion baht from Oxiteno to IVL.

KGI revised up its 2022 target price to Bt57.00, from Bt52.00, based on 9.5x EV/EBITDA to reflect the earnings upgrades. The securities company also upgraded IVL to Outperform, from Neutral, as KGI was positive to the acquisition of Oxiteno with total investment of US$1.3 billion (40.7 billion baht), implying inexpensive 6.266.5x  EV/EBITDA.

 

Maybank Kim Eng Securities (Thailand) (MBKET) has given a “BUY” recommendation on GFPT Public Company Limited (GFPT) with a target price at ฿14.60/share.

MBKET stated that the profit outlook for 3Q21 continues to improve during the high season when export volumes have increased. In addition, the gross margin increased in line with higher production efficiency. Even though the expansion of cooked chicken production capacity is slightly delayed, earnings are expected to remain in the direction of recovery in 2H21 and will increase significantly in 2022.