Kaohoon Online has selected stocks with a high-growth potential for investors to consider on January 4, 2022.
KTBST Securities (KTBST) has given a “BUY” recommendation on KCE Electronics Public Company Limited (SET: KCE) with a target price at ฿105.00/share, which is pegged to 2022E PER of 35.0x or +1.75 SD above its 5-yr average.
KTBST expected 4Q21E core profit to soar +82% YoY, +27% QoQ to Bt763mn in expectation of i) stronger gross profit margin given baht weakness, ii) higher revenue following an increase in an average selling price and production capacity, and iii) higher capacity utilization QoQ following the improvement in the COVID-19 situation.
The securities company maintained 2021E/2022E net profit forecast at Bt2.38bn(+11%)/Bt3.46bn(+46%). Revenue in USD terms is predicted to increase to USD450mn/USD600mn on the back of a continued increase in production capacities. Gross profit margin would be 28%/30% based on our conservative assumptions. There is an upside to KTBST’s 2022E earnings forecast on the product mix strategy, as the company is to build a new plant in 2022E, which will focus on high-profit-margin products.
KTBST stated that KCE has outperformed the SET Index by 9% in the past three months while underperforming by 10% inthe last month dueto investors’ sector rotation. The securities company recommended increasing the position in KCE as 1) the pace of earnings growth is expected to remain high over the next 2-3 years on the back of the company’s capacity increase plan, 2) the PCB business will likely continue to benefit from the EV megatrend, and 3) the stock’s valuation remains attractive, trading at 43.4x 2021E PER and 0.7x PEG based on our net profit growth estimate at a CAGR of 59% in 2020-23E.
Maybank Securities (Thailand) (MST) has given a “BUY” recommendation on Tisco Financial Group Public Company Limited (SET: TISCO) with a target price at ฿110.00/share.
Good earnings prospects due to high NPL coverage and profitability. Combined asset quality expected to improve in 4Q21 due to easing of lockdowns and higher vaccination rates. It is also expected to have a high dividend rate of around 7.3% per annum, increasing the attractiveness for accumulation.
