[ad_1]
KTB Securities (Thailand) expects that the second half of the year, the performance of the rubber business group will benefit from demand from China. And have a positive view of the news
The price of rubber, STR’s main product, increased to 46 baht per kg + 7% wow due to increased demand for rubber in China. After the restoration of the country began and COVID-19 subsided, industrial production resumed. Especially the wheel and tire groups. If demand remains high in the second half of this year, the average price of block rubber will exceed our annual assumption of 41 baht per kg. If the second half of the price of block rubber can reach 46 baht per kg. It can cause STR block rubber prices to rise to an average of 43 baht per kg.
Additionally, KTB Securities has the opportunity to adjust its earnings forecast by 4-5% this year, and rubber stocks like STA and NER are expected to respond positively during this period. KTB Securities reiterates STA “Buy”, target price 41.00 baht, based on a PER of 14x, equivalent to the 5-year average, and still recommends buying NER with a target price of 4.10 baht, based on an average PER of 9 times (value + 1SD). Average after entering the market)
The governor of the Thailand Rubber Authority (RAOT) revealed that the price of rubber rose to 60 baht per kilogram (kg) for the first time in three years, with the price of Class 3 smoked rubber sheet rising. At the price of 60.50 baht / kg, the current STR20 price of rubber is 46 baht per kg + 7% wow, the price of rubber tends to rise continuously. From the demand for rubber in China that has increased. Phillip Securities recommends buying STA shares at a reasonable price of 32 baht.
STA’s operating profit is expected to return to a 10-year all-time high, supported by STGT’s COVID-19 boost performance, allowing the asking price to increase based on existing demand. A lot of national and foreign clients. Additionally, production capacity has been expanded to accommodate more orders, which is expected to support growth in operations.
While operations in the natural rubber sector, despite the impact of COVID-19 sales, the recovery of large Chinese users following the easing of COVID-19 in the country caused a resurgence in sales. Once again, concerns about public use of public vehicles have prompted a rebound in car sales in China, a positive factor for the natural rubber business.
As for the traditional manufacturers that are big brands in Europe, the United States, the recovery is slower than the economic problems that arise.
However, following the occurrence of COVID-19, sales contracted more than before, prompting Phillip Securities to revise its rubber sales forecast of just 1.1 million tonnes and adjust the glove group’s operating forecast from Rubber. Get up from the original As a result, the 2020 sales volume increased to 73,198 million baht, an increase of 21%, and adjusted the gross profit margin from the STGT consolidation, resulting in a positive result of the increase in prices. on sale in the second half of the year.
In addition, the trend of increasing rubber prices in the second half of the year is positive for gross profit. And it adjusted STA’s net profit this year to 6.234 billion baht, a significant increase from the previous year.
