Stocks in Focus on November 2, 2021: KBANK and IVL

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on November 2, 2021.

 

Maybank Kim Eng Securities (Thailand) (MBKET) has given a “BUY” recommendation on Kasikornbank Public Company Limited (KBANK) with a target price at ฿170.00/share.

MBKET expected KBANK’s 2022 earnings to grow 16.4% to 38 billion baht, in line with the economic outlook from the gradual reopening. MBKET estimated NIM and fees income to grow, while credit cost drops. ROE is expected at 9.3% while the current valuation is trading at PBV 0.66x.

 

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

KGI Securities forecast IVL to report 3Q21F earnings of 5.8 billion baht (+1,423% YoY, ;31% QoQ). The sharp increase YoY would be primarily thanks to better spreads for all of IVL’s petrochemical products from low levels in 3Q20 due to the impact of COVID;19 pandemic last year.

Meanwhile, the decrease in QoQ would be largely from lower spreads for PET in Asia, MTBE in the US, and fiber for the quarter, leading to IVL’s core EBITDA margin falling 14% QoQ to US$113/ton in 3Q21F.

However, KGI Securities reiterated a rating of Outperform on the counter with an unchanged 2022 target price of Bt57.00, based on 9.5x EV/EBITDA. The securities company believed the share price will be supported by the good anticipated earnings in 3Q21F and higher current PET spread from China’s energy crisis.