Analyst Expects NOBLE to Post a New High in 2019 Revenue, Recomm BUY at ฿28.00

The share price of Noble Development Public Company Limited (NOBLE) increased ฿0.10/share or 0.59% to trade at ฿17.10/share in the morning session on January 21, 2020.

 

The share price rose following the announcement of NOBLE’s objective in 2020, the company plans to paunch 7 new projects with a total project value of 25 billion baht.

 

Asis Wealth Securities (AWS) has given a “BUY” recommendation on NOBLE with a target price at ฿28.00/share.

AWS states that NOBLE starts to recognize revenue from the transfer of 2 new completed condominiums including Noble Recole and Noble BE33 which are expected to be transferred in the 4Q19 by around Bt2bn. Due to this reason, AWS expects NOBLE to have total revenue at the end of 2019 of Bt14bn which is the highest level of the company.

In 2020, NOBLE plans to launch 7 new projects worth over Bt25bn (from previously only 1-2 projects per year). Two of seven projects are joint-venture projects (JVs) with BTS and Hong Kong Land with a total value of Bt12bn.

In addition, NOBLE sets revenue target Bt11bn-12bn. At present, there is more than Bt7bn backlog that will be realized this year which has already helped to secure around 70% of revenue, while the remaining will come from clearance of stocks of over Bt4bn.

AWS believes that NOBLE is likely to grow in the real estate industry both from the BTS group which is a partner and shareholder coupled with an opportunity to invest in real estate overseas, especially China, Hong Kong, England where the nCrowne Group (a major shareholder) has expertise in such countries.

In addition, it is expected that NOBLE will pay a high level of dividends. In 2020, the 2020 dividend rate is expected to be at Bt1.86 per share representing 11%.

 

As for the weekly outlook, the price can stand above the 200-week average support line and there is a signal to revise up, while daily outlook, the price has passed the resistance of Bt16.70 corresponding to the turnover that is 10x higher than the previous day. This is coupled with RSI that revised up to 57 hoping for further adjustment to test the next resistance at Bt17.70. Stop-loss point is at Bt15.60 (Resistance: 17.10 / 18.20; Support: 16.60 / 16.30).