Stocks in Focus on May 21, 2021: CHG and KCE

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on May 21, 2021.

 

Kingsford Securities has given a “Speculative Buy” recommendation on Chularat Hospital Public Company Limited (CHG) with a target price at ฿3.66/share.

After a positive 1Q21 earnings, Kingsford Securities stated a better performance from CHG in 2021 due to 1) revenue recognition from Heart Center of Sirindhorn Hospital (starting 2Q21 with an expected revenue of 150 million baht/year), 2) a better performance from Chularat 304 Inter and RPC, and 3) the company tended to receive positive sentiment from Covid-19 rather than negative.

Kingsford estimated 2021-22 earnings at 1,073 million baht (+22.42% YoY) and 1,208 million baht (+12.56% YoY), respectively.

 

Capital Nomura Securities (CNS) has given a “BUY” recommendation on KCE Electronics Public Company Limited (KCE) with a target price at ฿70.00/share (Support 62.5/62.0 Resistance 65.75/66.5 and Stop Loss at 60).

CNS stated that KCE had a positive outlook as pending orders were full to November amid rising demand in semiconductor in Europe. KCE expected to increase its price by 5% to support the impact from rising copper price. Overall, CNS expected earnings in 2021 at 2.2 billion baht, representing an increase by 103% YoY along with an increase in sales revenue by 28% YoY and higher GPM.

KCE has a PER21F at 33x and is expected to be listed in SET50 on the next rebalance to be announced in mid June with an effective date on July 1, 2021. The sector has lower impact from Covid-19 situation and the MSCI rebalance, coupled with a weak Thai baht outlook. KCE has a positive outlook going into 2Q21.