Stocks in Focus on October 27, 2021: SCGP and SPALI

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on October 27, 2021.

 

Maybank Kim Eng Securities (Thailand) (MBKET) has given a “BUY” recommendation on SCG Packaging Public Company Limited (SCGP) with a target price at ฿75.00/share.

MBKET stated that a slowdown in Q21 earnings was due to rising raw material, energy, and distribution costs while the pandemic disruption limited the ability to pass on cost escalation. That said, sales continued to grow YoY following domestic and international expansion, and integration of packaging solutions and products within the value chain.

MBKET added that the management kept its double-digit growth of over 100 billion baht in 2021 driven partly by the 20 billion baht investments in capacity expansion and acquisition. Earnings momentum should recover from 4Q with a strong acceleration bias into 2022. Maintain BUY with rolled forward DCF-based TP of THB75 (8% WACC, 3.2% G).

 

Asia Wealth Securities (AWS) has given a “BUY” recommendation on Supalai Public Company Limited (SPALI) with a target price at ฿25.00/share.

AWS expected SPALI’s 3Q21 net profits at 1.56 billion baht, a 28% QoQ drop from the impact of COVID-19, if net profits 3Q21 as expected 9M64 net profit will increase 69%YoY, accounting for 70% of its FY21 projection. While 4Q21 presales recovered, driven by 12 project launches and also 4Q21 is expected to recover strongly to the highest point of 2021 which is driven by a backlog that secured our full-year transfer target. SPALI is one of the stocks that benefited from the easing of LTV measures.