Analysts See High Dividend Yield of 10.4% in NOBLE, Recomm. “BUY” with a TP at Bt9.90

Noble Development Public Company Limited (NOBLE) has outperforming results for its 4Q20 earnings, recording 640 million baht of profit, increased 44% YoY and 22% QoQ. The increase was mainly due to a rising revenue of 21% from its three new projects, coupled with a higher gross profit margin at 42.1%, compared to 33.9% in 4Q19.

 

Besides, the Board of Directors of the company has resolved the  dividend payment for the second-half 2020 performance at 0.50 baht/share with an XD on May 10, 2021, and payment date on May 27, 2021.

For the 2021 business direction, NOBLE’s Chairman and Co-CEO emphasized that the company set its total revenue target at THB 11,000 million along with the develop 11 new projects worth combined 45,100 million baht and 16,000 million baht in pre-sale , paying the way for NOBLE to become a top-5 property developer in Thailand in 3 years time.

 

Asia Wealth Securities (AWS) gave a “BUY” recommendation on NOBLE with a target price as high as ฿9.90/share, seeing potential growth on a pent-up demand in overseas market that the company has high profile and credibility from foreign customers.

Moreover, AWS also saw a potential in its core and sub businesses, such as a joint venture with BTS for project development, an acquisition of 20% in SWP, a subsidiary of SAWAD, expecting to recognize income within this year.

In addition, AWS expected a high dividend payment in 2021 from NOBLE at ฿0.82/share, representing a yield of 10.4%.

 

DBS Vickers Securities (DBSVS) also gave a “BUY” recommendation on NOBLE with a target price at ฿8.71/share on positive earnings outlook in 2021-2022 at +6% and 17%, respectively. DBSVS focused on a joint venture with U City for a condominium development profit, while seeing a fast recovery in China as an opportunity to expand its business. NOBLE’s PE also underperformed its peer at 6.0x vs. 7.0x.