In today’s briefing:
- KBANK: Growth Remains Intact Despite Economic Headwinds
- Sri Trang Gloves (Thailand) Public Company Limited (STGT TB): Short-Term Pain; Long-Term Gain
KBANK: Growth Remains Intact Despite Economic Headwinds
- We reiterate our BUY rating with a target price of Bt174. Our BUY call reflects (1) steady growth ahead from improving economic recovery; (2) adequate reserves against new NPLs
- Net profit will likely rise 6% YoY (+14% QoQ) in 1Q22 given higher net interest income from elevated loans and an improvement in cost to income ratio.
- We expect minimal impacts from S&P Global Rating downgrade from “BBB+” to “BBB”.
Sri Trang Gloves (Thailand) Public Company Limited (STGT TB): Short-Term Pain; Long-Term Gain
- Riding on COVID-driven demand boom, Sri Trang Gloves (Thailand) Public Company Limited (STGT TB) reported record high performance in 2021, which is not likely to continue in near-term.
- However, post pandemic, gloves demand is expected to improve on the back of increased glove usage from emerging markets with low gloves consumption per capita and heightened hygiene awareness.
- STGT shares have corrected 15% thus far in this year, providing a good buy on dip opportunity. Shares can be considered for the long-haul.
Before it’s here, it’s on Smartkarma
