Stocks in Focus on December 21, 2023: TRUE and SAPPE

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on December 21, 2023.


Maybank Securities (Thailand) (MST) has given a “BUY” recommendation on True Corporation Public Company Limited (SET: TRUE) with ฿7.50/share.

MST expected TRUE’s core loss to narrow to THB1.7b in 4Q23E from THB1.9b in 3Q23 thanks to 0.5% QoQ revenue growth and a slight decrease in SG&A-to-revenue ratio to 13.0% in 4Q23E from 13.2% in 3Q23.

Core net loss is forecast to narrow to THB2.6b in FY24E from THB7.6b in FY23E on the back of 1% revenue growth and a 2% drop in cash-based opex in FY24E. The opex decrease should be supported by the continuation of organisation modernisation and tower dismantling (rental savings). MST expected the number of towers to drop by 3% in FY23E and 13% in FY24E.

In addition, TRUE is trading at 5.9x FY24E EV/EBITDA, lower than ADVANC’s 7.9x and ASEAN telcos’ average of 6.9x.


KGI Securities (KGI) has given an “Outperform” rating on Sappe Public Company Limited (SET: SAPPE) with a target price at ฿101.00/share.

KGI stated that the recent sharp fall in referenced sugar price for export of 20% from the peak in late-November 2023 should help boost SAPPE’s margin in 2024. KGI’s sensitivity analysis shows that every 5% drop in sugar price should boost the company’s earnings by around 3%. Meanwhile, a recent decline in PET resin price(-5% QTD) would be another factor to help reduce SAPPE’s cost of production in 2024. KGI fine-tuned only sugar price assumption for export business to increase +20% in 2024F (down from a +25% in its previous forecast).

However, KGI maintained its assumption that PET resin price would decline 5% in 2024F. Then, KGI raised its full-year 2024 earnings forecast by 5% and raised 2024 target price to Bt101, from Bt96.00, based on 25x PE.