Monday’s morning session saw the share price of SCG Packaging Pcl. (SET: SCGP) rising THB1.25 per share, or 2.27 percent, to THB56.25 per share, with a trading volume of THB605 million.
Kasikorn Securities (KS) has given a “BUY” recommendation on SCGP with a target price at ฿64.00/share.
KS stated that positive drivers are Thailand’s full reopening and easing lockdown in China which will increase demand for packaging products, resulting in higher paper selling price and positive 2H22 revenue.
Gradual decrease in energy prices, lower cost of waste paper and lower freight rate will also benefit SCGP.
KS added that the share price plunged into a lower territory while having an attractive valuation as 12M Forward PER edged lower to -1S.D. compared to an average.
