SFLEX Climbs 3% as the Analyst Expects Business Synergy from BTS’ 6% Acquisition

The share price of SFLEX rose ฿0.20/share or 3.36% to ฿6.15/share as of 11:40 local time in Thailand on Friday after the announcement of a big lot transaction to BTS.

 

Starflex Public Company Limited (SFLEX) has announced a big lot transaction of the sale of ordinary shares at the amount of 100 million shares, equivalent to 12.2% of total issued and paid up registered capital of SFLEX in which the company’s major shareholder, Mr. Printhorn Apithanasriwong, had sold 75 million shares, equivalent to 9.14% of paid up registered capital of SFLEX to BTS Group as follows;

 

1) BTS Group Holdings Public Company Limited (BTS) acquires 50 million shares, equivalent to 6.09% of total issued and paid up registered capital of SFLEX.

2) Mr. Teerapong Jansiri acquired 20 million shares, equivalent to 2.43% of total issued and paid up registered capital of SFLEX.

3) Mr. Anurit Kerdsinchai acquired 5 million shares, equivalent to 0.60% of total issued and paid up registered capital of SFLEX.

 

Trinity Securities stated that could be a long-term investment due to an interesting fundamental of SFLEX, coupled with low valuation that has yet to reflect its operating growth. The acquisition could create a synergy for future projects in terms of a strategic partner.

 

The security company recommended “BUY” with a fair value between Bt7.50-7.75 per share, based on 30x PER. The company has a forward P/E of 23.6x and PEG ratio of 0.5x, which is considered undervalued.

 

Moreover, the company offered a dividend payment of Bt0.045 per share with an ex-dividend date on April 19, 2021, representing a dividend yield of 0.75%.

 

Trinity Securities estimated SFLEX’s 2021-2022 earnings at 207 million baht and 264 million baht, respectively, representing an increase of 42.2% and 27.9%, respectively. The forecast did not include future M&A deals domestically and internationally.