Stocks in Focus on March 8, 2021: STEC and KTB
Stocks in Focus on March 8, 2021: STEC (Maybank Kim Eng TP at ฿18.00/share) and KTB (KGI Securities TP at ฿16.50/share).
Stocks in Focus on March 8, 2021: STEC (Maybank Kim Eng TP at ฿18.00/share) and KTB (KGI Securities TP at ฿16.50/share).
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Kaohoon Online has selected stocks with a potentially high growth for investors to consider on March 8, 2021.
 
Maybank Kim Eng has given a “BUY” recommendation on Sino-Thai Engineering and Construction Public Company Limited (STEC) with a target price at ฿18.00/share.
Maybank stated that STEC has a current backlog of about THB78b (including THB6.2b in the Government Complex Project), and will increase in the future from additional projects. Consequently, STEC’s backlog would exceed THB100b.
Maybank expected normalised profit to improve in 2021 to THB1.11b, an increase of 28% YoY from the recognition of construction of GULF power plant at Pluak Daeng (THB9.2b)and Hin Kong power plant (THB8.8b). Note that, power plant project offers a good margin. The new Parliament building project will also complete in 2021, resulting in better gross margin.
 
KGI Securities has raised an outlook on on Krung Thai Bank Public Company Limited (KTB) from “Neutral” to “Outperform” with a target price at ฿16.50/share.
KGI stated that the guidance from KTBs management indicated the bank is benefitting from growing loans related to the government and may have upside from monetizing its customer base.
As credit cost has peaked and the bank is growing new lending in the low-risk segment, KGI raised its 2021/2022 earnings forecasts by 24%/26%, respectively, mainly reflecting credit cost being cut to boost 2021 earnings and lower cost/income ratio to boost 2022 earnings. Applying re-rated PBV of 0.6x (from 0.55x) of BV-22F along with ROE improvement, KGI reached a new target price of Bt16.50, form Bt13.20.
 