TVO Targets 5% Income Growth in 2021 on Stronger Soybean Demand, Analyst Recomm. “BUY”
TVO Targets 5% Income Growth in 2021 on Stronger Soybean Demand, Analyst Recomm. “BUY”
TVO Targets 5% Income Growth in 2021 on Stronger Soybean Demand, Analyst Recomm. “BUY”
12 มี.ค. 2564

Mr.Pachai Chanpitaksa, Director and Executive Vice President, Supply and Trading Department of Thai Vegetable Oil Public Company Limited (TVO), said that the company set revenue growth target at 5% year-on-year in 2021, specifically, gains from higher sales volumes of soybean meal and refined soybean oil.
 
As demand for soybean across the globe remains higher than production and global soybean ending stocks is low, which led to the rise in selling prices, TVO believes the sales volume will continue to grow this year. 
 
TVO expects to maintain gross profit margin (GPM) at over 11.40% as the company is able to purchase imported raw materials from the US-Brazil at fixed rates for the next 3-6 months, leading GPM higher.
 
Additionally, the company set aside about 200 million baht for improving manufacturing efficiency and quality to fulfill customer needs. 
 
KTBST Securities stated that it is positive towards this aforementioned issue, therefore reiterating a “BUY” recommendation on TVO and a target price of ฿44.00/share, which is pegged to 2021E PER of 17.8x, or +1SD above its 5-year average, in anticipation of improving earnings in 2021/22 by +22%/+5% YoY amid soybean price rising.  