KEX Extends the Gain as the Analyst Expects Earnings Recovery to Begin in 2Q21
KEX gained more than 3% as the analyst expected to see a recovery in earnings from 2Q21 onwards from the resurgence of Covid-19.
The share price of Kerry Express (Thailand) Public Company Limited (KEX) extended its gain on May 20, 2021, after a 5.84% increase yesterday as the analyst expected to see a recovery in earnings from 2Q21 onwards.
KEX rose ฿1.50/share or 3.68% to ฿42.25/share as of 11:45 local time in Thailand with a trading value of 696 million baht.
KTBST Securities (KTBST)gave a “BUY” recommendation on KEX with a target price at ฿55.00/share, reiterated its 2021E net profit estimation at 1,743 million baht, representing an increase of 24% YoY. The earnings in 1Q21 accounted for 17% of 2021E estimation, KTBST expected to see a recovery in earnings from 2Q21 onwards, seeing the intensifying Covid-19 outbreak would result in more online shopping and delivery.
KTBST believed that the E-commerce in Thai market has the potential for higher growth, and KEX would benefit the most from being the leader in package-delivery business, coupled with the highest market share and upside from M&A.