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Maybank Securities (Thailand) (MST) has given a “BUY” recommendation on TMBThanachart Bank Public Company Limited (SET: TTB) with a target price at ฿2.00/share.
MST stated that TTB’s operating results for 1Q24 grew 24% YoY and 10% QoQ, driven by the use of tax benefits. Meanwhile, asset quality remains strong, as reflected in the NPL ratio, which improved to 3% from the previous period’s 3.1%, while the coverage ratio increased to 155.4% from 154.9%.
For 2Q24, we expect profit to continue expanding both QoQ and YoY. For the full year, we anticipate profit growth of 11%, higher than the group’s expected growth of 5.6%. TTB’s advantage over the group lies in its business tax benefits, which will help manage operating results over the next 2-3 years, with current tax benefits remaining at approximately 14 billion baht.
From a valuation perspective, trading at a PBV24E of 0.7 times is lower than the 5-year historical average, making it an inexpensive level. Additionally, TTB offers a high dividend yield of 7.3% per year.
Finansia Syrus Securities (FSS) has given a “BUY” recommendation on Osotspa Public Company Limited (SET: OSP) with a target price at ฿24.50/share.
FSS had a slight positive view following the analyst meeting with 2Q24 earnings outlook to grow YoY and flat QoQ. The management maintained mid-single digit revenue growth outlook for this year, seeing domestic revenue continuing to grow with higher market share. Meanwhile, its personal care segment is expecting to launch new products.
FSS expected domestic QoQ growth to be weaker due to seasonality, but should expand 18% YoY. OSP would need to ramp up its performance as 3Q is the low season for domestic and international sales. Still the overall outlook is positive and better than what FSS had anticipated. FSS expected normalized profit in 2024 to grow 21%.
