MEGA Jumps 8%, Analyst Recomm. “BUY” on Estimated Record Earnings in 2H21
Analyst expects MEGA's 3Q21 earnings of 400 million baht, marking the fifth consecutive quarter of growth, driven by an increase in GPM YoY from the Mega We Care business
The share price of Mega Lifesciences Public Company Limited (MEGA) rose ฿3.75/share or 8.29% to ฿49.00/share as of 10:50 local time in Thailand, with a target price of 347 million baht.
Capital Nomura Securities (CNS) reiterated its “BUY” recommendation on MEGA with a target price of 50 baht, citing the company’s expectations for 3Q21 earnings of 400 million baht (+17% YoY, -15% QoQ), marking the fifth consecutive quarter of growth. This is due to an estimated increase in GPM YoY from the Mega We Care business. On the other hand, normal QoQ profit would decline in lockstep with declining revenue.
CNS forecasts MEGA’s normal profit to decline YoY in 4Q21 as revenue from Maxxcare is expected to be impacted by Myanmar kyat depreciation, before rebounding in 1Q22.