Stock In Focus

Kaohoon Online has selected stocks with a potentially high growth for investors to consider on January 26, 2021. KTB Securities (Thailand) (KTBST) has given a “BUY” recommendation on Exotic Food Public Company Limited (XO) with a target price at ฿16.00/share. KTBST stated that the target price at Bt16.00 is pegged to 2021E PER of 18.0x, or -0.5 SD below its 5-yr average. Key reasons are 1) an earnings uptrend that net profit exceeded Bt90.0mn per quarter from 2Q20 on the back of the work from home approach in Europe revenue from the European market generally accounts for 81% of XOs total revenue, 2) the strong EPS growth outlook, which we estimate to grow 13% CAGR in 2020-22E, 3) the company's net cash position since 2015, and 3) a low FX risk given a high baht revenue proportion at 75% of total revenue. KTBST forecasted XO’s net profit to grow +157% to Bt314mn in 2020E and a further +19% to Bt373mn in 2021E in expectation of strong demand for its sauce products and a low cost of raw materials. Moreover, the company has signed a contract to lock in the raw material prices until YE2021. Kasikorn Securities (KS) has given a “BUY” recommendation on Prima Marine Public Company Limited (PRM) with a target price at ฿13.20/share. KS expected PRM’s net profit to grow strongly by 36% YoY on new FSUs, increasing service rate and 100% utilization rate. Meanwhile, KS stated that it had a positive view on its 2021 earnings prospects after PRM reached an agreement to lease 3 vessels to TOT for 10 years.