Stocks in Focus on May 19, 2021: SCGP and SABINA

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on May 19, 2021.

 

Capital Nomura Securities has given a “BUY” recommendation on SCG Packaging Public Company Limited (SCGP) with a target price at ฿60.00/share (Support 56.25/55.25 Resistance 58.0/59.0 and Stop Loss at 54.0).

SCGP is the largest packaging business in SEA with a business from downstream to upstream and the funds for expansions and acquisitions, which would benefit the company in reaching out to more customers and new markets.

CNS expected 2Q21 normalized profit to continue growing from the low base in 2Q20, and estimated 2021 net profit to increase 40% YoY to 9,068 million baht from the increasing production capacity and a full-year recognition from COVI and Go-Pak.

SCGP is a leader in the sector with high potential growth. The securities traded at PER21 of 27x, expecting to be listed in FTSE (announce May 21) with a fund inflow around US$75 billion (rebalance June 18), which would be another positive sentiment after being listed in MSCI.

CNS forecasted 2021-2023 CAGR to grow at 16% as a leader in the market with strong business and the largest in SEA. The company has potential growth from booming E-commerce and Food Delivery business with good M&A and Track Record.

 

Maybank Kim Eng has given a “BUY” rating on Sabina Public Company Limited (SABINA) with a target price at ฿24.00/share.

Maybank stated that SABINA recorded higher revenue in 1Q21 even with the new wave of Covid-19. The earnings result in 2Q21 would be in a positive side and accelerate in 2H from the resilience in operating strategy, resulting in higher profit. Meanwhile, sales from NSR also have the potential to grow as well.