NOBLE Hikes 9% to a New High in 4 Months, Analyst Recommends “BUY” TP at ฿24.30

As of 14.55 local time in Thailand, the share price of NOBLE Development Public Company Limited (NOBLE) was at THB20.80, increased THB1.80 or 9.47%. During the session, the highest of NOBLE’s share price was THB21.50 and the lowest was THB19.60 with a trading value of THB227,792 million. NOBLE’s share price has reached a new high in 4 months since the price was at THB22.60 on 3 March 2019.

Asia Wealth Securities has stated after NOBLE has restructured its business and changed the management. NOBLE is expected to be a property that will return to operate continuously as a continuous property developer. This will be different from previously being an interval property developer which will not often operate large projects. The new management has planned to fully penetrate real estate in both middle to high and middle to low markets.

NOBLE is a cheap stock with only 3.6x PER which is lower than the industry average, however, Asia Wealth recommended “BUY” with a target price of ฿24.30/share based on a 5.0x PER of 2019 and a high dividend yield of 8.0%.

The positive factors for performance are firstly, Asia Wealth expects a full-year net profit of 2019 at ฿2.22 billion or increasing by 125% YoY. In 1Q19, NOBLE has already made a profit of THB1.30 billion.
Secondly, it has projects in stock worth around ฿5.0 billion, commercial property and another ฿4.0 billion of land awaiting development. It is an asset awaiting sale from the previous owner. It is expected to help increase the extra revenue for the company in this 1-2 years.
Thirdly, NOBLE adjusts the business plan by relying more on foreign customers with a target to expand the foreign customer base to 30-40% of total sales. Most of the foreign customers are from China and Hong Kong. We see Co-CEO, Mr. Frank Leung, through nCrowne (holding 24.9%) and BTSG (holding 9.9%) will greatly help on marketing support with foreign customers.
Lastly, NOBLE plans to launch four projects worth a total of ฿17.9billion in 2H2019 which a highlight of the project located on Wireless Road worth up to ฿11.00 billion.