Stocks in Focus on March 12, 2021: HMPRO and IRPC
Stocks in Focus on March 12, 2021: HMPRO (Krungsri Securities TP at ฿19.00/share) and IRPC (Maybank Kim Eng TP at ฿4.50/share).
Kaohoon Online has selected stocks with a potentially high growth for investors to consider on March 12, 2021.
Krungsri Securities (KSS) has given a “BUY” recommendation on Home Product Center Public Company Limited (HMPRO) with a target price at ฿19.00/share.
KSS raised the target price of HMPRO to Bt19.00 after adjusting earnings and moving the valuation base to FY22F to reflect the recovery year for HMPRO. The anticipated sharp rebound in tourist arrivals would reignite activities and drive sales at HMPRO’s stores in those cities, including Bangkok (54% of stores).
KSS stated that HMPRO is an alternative play to capture the imminent recovery in Thailand’s tourism sector. The stock is trading at 28x FY22F PE (-0.5SD of its 5-year mean multiple) vs our target of 36x PE (+1SD of mean).
Maybank Kim Eng has given a “BUY” recommendation on IRPC Public Company Limited (IRPC) with a target price at ฿4.50/share.
Maybank expected IRPS’ olefins business in 1H21 to book higher profit than anticipated, especially ABS spread that Maybank estimated a growth as much as 30% QoQ from the missing global supply around 10%. Meanwhile, PP spread maintained at a high level amid tightening supply in U.S. and North East Asia.