Kaohoon Online has selected stocks with a high-growth potential for investors to consider on November 9, 2021.
Maybank Kim Eng Securities (Thailand) (MBKET) has given a “Trading BUY” recommendation on Thai Union Group Public Company Limited (TU) with a target price at ฿24.60/share.
MBKET stated that 4Q21 earnings are likely to recover both QoQ and YoY as the petcare business recovers after the factory has resumed normal production, which will boost sales and margins. Red Lobster should see lower loss YoY as all stores reopened, with higher guess count. The sale of TFM shares (via IPO) resulted in a cash inflow of 1.48 billion baht and gains of 200 million baht (recorded in the shareholders’ equity).
The 9M21 normalised profit accounted for 76% of MBKET’s FY2021 forecast. MBKET maintained its earnings projection. The stock is trading at 13.3x PE, -1 SD of average PE and still has a 20% upside to our target price of THB24.60 (16x PE). Maintain TRADING BUY rating.
Capital Nomura Securities (CNS) has given a “BUY” recommendation on North East Rubber Public Company Limited (NER) with a target price at ฿9.20/share.
CNS stated that NER has a strong customer base while receiving more from Indian customers. As for the 4Q21 outlook, CNS forecast that the normalized profit might decrease compared to the previous quarter due to lower selling volume and GPM. However, the net profit would still post outstanding performance in 2021-22 from production increase, higher rubber price and demand from India and China following the expansion of their auto industry. More importantly, the company will introduce a new product, which is a cow rubber mat, a higher margin product than rubber, mainly to Australia.
