Stocks in Focus on October 5, 2021: KBANK and BGRIM
Stocks in Focus on October 5, 2021: KBANK (Maybank Kim Eng Securities TP at ฿160.00/share) and BGRIM (KGI Securities TP at ฿59.00/share).
Kaohoon Online has selected stocks with a high-growth potential for investors to consider on October 5, 2021.
Maybank Kim Eng Securities (Thailand) (MBKET) has given a “BUY” recommendation on Kasikornbank Public Company Limited (KBANK) with a target price at ฿160.00/share.
MBKET expected KBANK to gain benefits from economic recovery and higher vaccinations in 4Q21, coupled with strong cost of funds while valuation gap is too far from SCB. MBKET stated that KBANK trades at 0.67x 2021P/BV and 7.3% ROE while SCB trades at 1.0x 2021 P/BV and 8.0% ROE.
KGI Securities has given an “Outperform” rating on B.Grimm Power Public Company Limited (BGRIM) with a target price at ฿59.00/share.
The company entered into the Share Purchase Agreement with visaVento Holding AG for an onshore wind power plant in Poland with a production capacity of 14.1MW or 12.7MWe to acquire 90% shareholding of investment value worth €21 million (€1.5mm/MW). KGI Securities expected this deal to return 12 million baht of profit to BGRIM by 2023 with EIRR and WACC at 11.6% and 4.8%, respectively, and an upside around Bt0.14 per share from this deal, based on 1) average FiT 70€/MWh 2) 20 years operating contract (10 years with an option to extend 10 more years) and 3) capacity factor of 30%.
The Bt59.00 target price excludes the newest deal in Poland.