HILITE: XO is up 1.42%, the broker expects the net profit of 64 to continue to grow even in Q3.

XO share price rose 1.42% or increased 0.30 baht to 21.50 baht, trading value 33.85 million baht at 12:24 p.m. Opening price 21.60 baht, which is the highest price. The lowest price is 21.40 baht.

KTBST Securities stated in the analysis Exotic Food Public Company Limited (XO) shares that from the Opportunity day event, the key issues are as follows: 1) The company maintains its revenue growth target of +10% YoY and GPM at 40%, 2) currently has sales Sold in 3Q21 in hand of around 400 million baht and expected to be able to export as targeted. Despite the continuation of transportation problems from the second quarter of 2021, 3) extending the time of using the Listing fee strategy to continue until 2022 after being highly successful this year, and 4) the Company postponed the expansion of the group’s production line. Sauce in Amata Estate will be released to the second half of 2022 from the original half of 2021.

In this regard, KTBST Securities Maintain 2021 net profit of Bt484mn (+52% YoY) Sales outlook for 3Q21 is in line with the QoQ contraction expected despite still having transport problems. But we weren’t too worried. Because in the first half of 2021, the company has proven to be able to manage quite well. While the supplier issue, we view it as a short-term impact only. However, the 2022 earnings have upside from the expansion of sauce production capacity by around 7,000 tons per year, which is not included in the share price hike projection. outperform SET +59% over 6 months

We still recommend ‘Buy’ because 1) demand for seasoning sauces can continue to expand until 2022 from the extension of the Listing fee strategy, resulting in EPS CAGR (2020-2022) continuing to expand at +31.4. % above the historical average of +24% and 2) GPM will remain high above 40% through 2022 as raw material price locks have been reached in 2022.

Target XO is priced at Bt26.00 based on 2021E PER of 23x (equivalent to 5-year average PER), with XO currently trading at 2021E PER at 18x ​​and growing EPS CAGR (2020-2022E) at 31.4%.


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