Stocks in Focus on November 16, 2021: MEGA and RATCH

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on November 16, 2021.


Maybank Kim Eng Securities (Thailand) (MBKET) has given a “BUY” recommendation on Mega Lifesciences Public Company Limited (MEGA) with a target price at ฿55.00/share.

MBKET stated that MEGA reported 3Q21 core profit of 536 million baht (+15%QoQ, +40%YoY) from strong sales growth in high profit margin products. This helps support margins to increase from 2Q21 at 41.9% to 43.3%. MEGA is expected to be a stock that benefits from a health trend that supports the consumption of vitamins to continue to increase.


KGI Securities has given an “Outperform” rating on Ratch Group Public Company Limited (RATCH) with a target price at ฿59.75/share.

KGI Securities stated that RATCH reported 3Q21 core earnings of 1,593 million baht (+7.8% YoY, -23.5% QoQ). The result was 7.1% below its forecast mainly due to higher-than-expected tax (no tax benefit from the sale of Tri Energy power plants). There was an unrealized FX loss of Bt155mn, so 3Q21 net profit was Bt1,438mn (-16.5% YoY, -32.3% QoQ). The company’s 9M21 core profit was Bt5,285mn (+22.9% YoY), accounting for 80.7% of its full-year forecast. RATCH’s 4Q21 core profit is expected to increase slightly QoQ due to i) resumption of full operations of Hongsa, and ii) COD of 145MWe Riau gas-fired power plant. Thus, KGI Securities’ 2021F full-year forecast would have a slight upside.

KGI Securities maintained a rating of Outperform with a DCF based 2022 target price of Bt59.75, foreseeing core earnings growth YoY in 2022F.