Stocks in Focus on May 24, 2021: RS and BJC

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on May 24, 2021.

 

KGI Securities has given an “Outperform” rating on RS Group Public Company Limited (RS) with a target price at ฿32.00/share.

RS reported a net profit in 1Q21 at 140 million baht (+37% QoQ, -25% YoY), while maintaining its 2021 revenue target at 5.7 billion baht (+51% YoY). 70% or 4 billion baht would be the recognition from commerce business.

KGI stated that the targeted revenue was quite challenging and expected RS’ earnings to recover strongly in 2H21 from the economic recovery and the introduction of new products. KGI maintained its 2021 earnings estimate at 715 million baht, representing an increase of 35% YoY, while expecting the company to record 1 billion baht of earnings in 2022.

 

Maybank Kim Eng has given a “BUY” recommendation on Berli Jucker Public Company Limited (BJC) with a target price at ฿44.00/share.

Maybank stated that even though the consumer products (FMCG) and the hypermarket (BigC) segments are affected by the COVID-19 outbreak, the packaging segment has received orders from new customers and is seeing positive demand momentum. In addition, sales of healthcare products should also continue growing.

In addition, new can sizes are being produced for the fast growing functional drinks market. Gross margin is targeted to increase 50 bps to x% mainly driven by cost efficiency gains in packaging and FMCG segments. SG&A is under control and still benefiting from the business restructuring last year.

Maybank expected BJC’s 2Q21 earnings to recover both QoQ and YoY. Maintain BUY with a DCF-based TP of THB44 (7.1% WACC, 3% G).