ICHI Reaches a New High in 5 Years at Bt14.40, Analysts Recomm. “BUY” at a TP of Bt17

The share price of Ichitan Group Public Company Limited (ICHI) rose to a new high in more than five years on March 18, 2021, closing the morning session at ฿14.40/share, increased ฿0.70/share or 5.11% with a trading value of 735 million baht.

 

Krungsri Securities (KSS) has given a “BUY” recommendation on ICHI with a target price at ฿17.00/share and raised FY21F earnings to Bt809m (+57% yoy) after upgrading revenue and margins from terpene drinks.

The strong growth would be driven by vitamin and terpene drinks, new OEM clients, recovering domestic and export sales amid the improving COVID-19 situation, and strong contribution from the Indonesian JV (target >Bt30m profit).

 

Capital Nomura Securities (CNS) has given a “BUY” recommendation on ICHI with a target price at ฿15.80/share, expecting earnings in 2021 to grow continuously at 732 million baht (+42% YoY) mainly from the vitamin B and terpene drinks that were among one of the first products in the market, supported by its well-known marketing in debuting a new product.

ICHI traded at 24x of PER21, but still lower than its peers at 25-33x. Meanwhile, the company has a dividend payment of Bt0.50 (3.6% div. yield) with an ex-dividend date on May 6, 2021.