EPG Hikes 5% to a New High in 4 Months, Analyst Recommends TP at ฿8.50/Share
 EPG Hikes 5% to a New High in 4 Months, Analyst Recommends TP at ฿8.50/Share
EPG Hikes 5% to a New High in 4 Months, Analyst Recommends TP at ฿8.50/Share
18 ก.ค. 2562

As of 14.55 local time in Thailand, the share price of Eastern Polymer Group Public Company Limited (EPG) was at THB7.15, rose THB0.35 or 5.15%. During the session, the highest of EPG’s share price was THB7.20 or lowest was THB7.00 with a trading value of THB188 million. A rise of EPG’s share price has increased to the highest level in 4 months since the price was at THB7.25 on 1 March 2019.
Finansia Syrus Securities recommended “BUY” EPG share with the target price of THB8.50/share. Finansia expected a profit of 1Q2019/2020 (April – June) to recover as the first quarter in the 4 quarters, increasing 80%QoQ to THB 202 million due to a low cost of polyethylene resin. Currently, the price of High-Density Polyethylene (HDPE) is USD1,000/ton, Polypropylene (PP) is USD1,086/ton, Polyethylene Terephthalate Ethylene, and (PETE) is USD99/ton which decreasing 17%YTD, 11%YTD, and 13%YTD, respectively.
A decreasing of polyethylene resin’s price might due to affect from having low demand, high supply, and baht appreciation. The new design of the canopy has a good sale in China due to a new policy of China has regulated the pickup truck to have a cover.
Moreover, in 2019/2020 (April 2019 – March 2020), EPG has focused on cost deduction, therefore, Finansia expected the EPG profit to turnaround 11% after it has been continuously shrunk for many years.