SCC group of companies or another name that many investors call it. large cement stocks Considered a group that has received interest from general investors. With the recent growth of the business, it can generate returns for investors such as dividends at a relatively high level.
But with the overall picture of the economy in many countries entering recession and monetary policy upward As a result, purchasing power in many types of goods has declined. Including SCC’s subsidiaries, SCG Packaging Public Company Limited or SCGP, who have been affected as well.
At the same time, something that reflects investor beliefs, such as the stock price itself, has received a negative response, according to Wealthy Thai, which has surveyed the stock price movement in the past 6 months (from 19 Jan. 23 to 18 Jul. 23), found that it dropped 29.09% or dropped to the price level of 39 baht, but this adjustment of SCGP will be an opportunity to invest or not. We have found the answer.
The analysis from Krungsri Capital Securities Public Company Limited gives a “buy” recommendation for SCGP with a target price of 52 baht, although the profit in the first half of 2023 may not be very prominent. But the continued quarterly recovery reflected earnings bottoming out. Therefore, it is seen as an opportunity to gradually accumulate in response to the continuous recovery during the rest of the year and the current stock value is attractive.
As for the 3Q23 profit, it is expected to recover from the same period last year and the previous quarter. from increasing income according to the ASEAN economy and China gradually recovering Including the opportunity to see an increase in the selling price of the packaging paper group, which is the main income proportion. While the cost of paper and coal continued to decline.
In terms of analysts, Dao Securities (Thailand) Public Company Limited gives a “buy” recommendation with a target price of 43 baht due to a more positive outlook from the profit direction that has passed the bottom and the trend in the second half of the year 2023 will continue to recover. while the current stock price has already reflected negative factors
but anyway The profit forecast for 2023 has been revised down by 10% to 6 billion baht, but still grows from the previous year by 5% to reflect slower-than-expected total revenue, especially in the packaging paper business. The trend in the second half of the year 2023 will continue to improve both from the same period last year and before.
The supporting factor will come from the continuous positive recognition from the overall cost reduction. especially the cost of waste paper This typically has a lagging effect of around one quarter, giving the core EBITDA margin room to grow. And the trend of demand for packaging in ASEAN has improved after the inflationary direction began to decrease and the tourism sector recovered.
2023-07-21 11:37:48
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