Analysts Recommend “BUY” SABINA, Giving a TP of Bt25 over Growing Revenue from NSR

Sabina Public Company Limited (SABINA) expected sales goal in 2021 to hit a new high of 3.4 billion baht, a 15% YoY increase, which the company will focus on non-store retailing (NSR) channel.

The sales growth target for revenue from the NSR channel is set at 20%, 15% for revenue from the retail channel, 15% for revenue from OEM, and 50% for revenue from exporting SABINA goods to CLMV countries in line with Vietnam’s strong economic growth, plus the total sales from the Philippines as a key conducive factor.

 

SABINA declared a 2020 dividend payment of 0.80 baht per share to be paid on May 21, 2021. The ex-dividend date is May 6, 2021.

 

Tisco Securities has given a “BUY” recommendation on SABINA with a target price at ฿25.00/share, expecting 2021 earnings to grow due to lower impact from the coronavirus and higher contribution from NSR to 19%. Meanwhile, SABINA is traded at 1SD of its historical trading data.

 

Maybank Kim Eng has given a “BUY” recommendation on SABINA with a target price at ฿24.00/share

The security company stated that despite earnings estimates cut, profits are expected to grow 27% this year. Both sales and margins would recover after COVID situation eases, higher utilisation rate, including cost control that leads to reduced employee expenses.

Maybank expected net profit may return to grow YoY from 1Q21 onwards. Financial position remains solid, allowing dividend pay-out ratio of 100%, implying a 4-5% yield. Maybank reiterated BUY call, with TP (DCF) revising down to THB24 from THB25.