KTBST Securities (KTBST) has given a “BUY” recommendation on R&B Food Public Company Limited (SET: RBF) with a target price at ฿29.00/share.
The securities company stated that according to the inquiry to RBF’s management, the company has now expanded its hemp field to more than 100 rais (approx 160,000m²), compared to only 10 rais (approx 16,000m²) in September 2021 while having a total of 340 rais available and licensed to grow hemp.
The current 100 rais consisted of 90 rais for CBD distillation and another 10 rais for seed oil distillation.
KTBST estimated net profit in 2021 at 428 million baht, while 4Q21 net profit has a positive outlook on lower material costs compared to 3Q21. Net profit in 2022 is estimated at 1,450 million baht (+238% YoY), supported by an upside from the selling price of CBD distillation. The share price gained 11% in the past three months while trading at 2022E PER 31x (+0.5SD above 5-year average).
