Stocks in Focus on December 8, 2020: PTTGC and SCC
Stocks in Focus on December 8, 2020: PTTGC (KGI Securities TP at ฿65.00/share) and SCC (Maybank Kim Eng TP at ฿430.00/share).
Stocks in Focus on December 8, 2020: PTTGC (KGI Securities TP at ฿65.00/share) and SCC (Maybank Kim Eng TP at ฿430.00/share).
8 ธ.ค. 2563

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on December 8, 2020.
 
KGI Securities has given an “Outperform” rating on PTT Global Chemical Public Company Limited (PTTGC) with a new target price at ฿65.00/share.
KGI estimated PTTGC to report 2021 earnings of Bt14.7bn, jumping YoY from a net loss of Bt2.5bn mainly thanks to i) higher stock gain of Bt1.9bn, up YoY from a stock loss of Bt6.0bn in 2020, ii) base GRM soaring 73% YoY to US$4.0/bbl next year, and iii) start-ups of two sizable petrochemical projects such as the olefins reconfiguration project (ORP) and the PO/Polyols project in December 2020.
Thus, KGI upgraded 2021 target price to Bt65.00, from Bt57.00, based on a higher EV/EBITDA to 8.0x, from 7.5x, to reflect the earnings upgrade in 2021 and its forecast of huge earnings growth next year.
In addition, KGI expected significantly better earnings YoY and QoQ to above Bt3.0bn in 4Q20 thanks to petrochemical recovery; especially an incredible jump in phenol/BPA spreads for the quarter.
 
Maybank Kim Eng has given a “BUY” recommendation on The Siam Cement Public Company Limited (SCC) with a new target price at ฿430.00/share.
Maybank stated that SCC’s earnings outlook in the next 3-5 years should enter a growth stage driven by all three businesses. The petrochemical business will see production capacity increase 70%, focusing on HVA and innovation, the cement-building material products (CMB) business focuses on services and solutions to retail while the comprehensive packaging business aims to achieve double growth over the next five years.