KAMART Soars 8%, Beating Target Price! Analyst Indicates Lower P/E, Higher 2019 Revenue

The share price of Karmarts Public Company Limited (KAMART) closed the morning session on June 6, 2019, at ฿4.76/share, gained ฿0.22/share or 4.85% with a trading value of THB 53.2 million. The highest of the morning session is ฿4.90/share (+7.9%) and the lowest is ฿4.56/share.

Tisco Securities gives a “BUY” recommendation with a target price at ฿4.80/share after the report of THB 77 million of profit in the first quarter of 2019, grew 7.7% YoY and 17.2% QoQ. Meanwhile, KAMART’s gross profit margin started to move in stable level when compared to other cosmetic companies that reported a decrease in revenue due to the reason of KAMART does not rely on international sales (China) as much as other companies.

In addition, Tisco has estimated KAMART’s 2019 revenue to grow 10% YoY. KAMART’s PER is at 12x in 2019, -1SD for the company and lower average of retail sector which is 28x. Moreover, KAMART always maintain its dividend payment at ฿0.28/share or 7.6%.

However, there are a few risk that Tisco has remarked. 1) The slow down of consumer’s expense. 2) High competitive from domestic and international. 3) Limited company’s information.