Ubon Bio Surges for a Second Straight Day, Bouncing Back above IPO Price
UBE's stock has risen for two days in a row, pushing the stock's value well above its IPO price of THB2.40
The share price of Ubon Bio Ethanol Public Company Limited (UBE) rose THB0.06/share or 2.52% to THB2.44/share as of 12:11 p.m. local time in Thailand, with a trading value of 1,131 million baht.
UBE surged above its IPO level for the first time since the first trading day in the Thai stock market on September 30, 2021.
KGI Securities (Thailand) (KGI) reiterates a rating of Outperform on UBE with an unchanged 2022 target price of THB3.20, based on 23.0x P/E. KGI has a positive view on UBE’s 3Q21 analyst meeting, thus forecasting the company’s 4Q21 earnings to slightly improve QoQ as higher sales volume of fuel grade ethanol, organic starch, and flour are almost offset by lower sales volume of industrial grade ethanol and native starch.
KGI also believes robust anticipated earnings in 4Q21 and expected high earning growth of 86% to THB543 million in 2022 will support the share price.
