Home Business SCB is higher than the book, raising the bank, hoping for KBANK to open a “secret deal”

SCB is higher than the book, raising the bank, hoping for KBANK to open a “secret deal”

by news dir

HoonSmart.com>>Siam Commercial Bank (SCB) shows a miracle, causing bank stocks that have fainted for a long time. come back to trade share price surge Investors are willing to pay for SCB shares that are 1.05 times higher than the book value (book) and more than 15 times the P/E. There is also strong speculation in the shares of Kasikorn Bank (KBANK) amid the news that it is preparing to announce a deal. Secret this week, so keep an eye out and don’t blink…

Analysts attended special meetings with SCB management on Sept. 22 and Sept. 23, 2021, concurrently released their analysis of more than 10 locations, all of whom had a positive view on the transformation. It is a fintech under the name SCB X, which draws the opportunity to generate huge profit margins over the next 5 years, therefore still recommends ‘Buy’, but most of them keep their target price unchanged. Only 3 securities companies have raised their price targets in 2022, led by Finansia Syrus Securities, offering the highest price at 158 ​​baht, from 136 baht. Nomura Securities Pattanasin increased to 150. baht from the level of 117 baht and Asia Plus Securities increased to 136 baht from the level of 122 baht, except DBS Securities Vickers (Thailand), which recommends only “Hold”, giving the lowest target price of 115 baht, lower than the latest price on 23 Sept., closed at 130 baht.

“Financia Cyrus Securities offers a price of up to 158 baht, appraised on the Card X credit card business and fixing weaknesses in business operations. As a result, the return on equity (ROE) increased to 15-20% from the level of 8% of SCB while DBS Securities We expect earnings per share this year to be 9.54 baht, up 15.1%, but in 2022, it will only be 7.80 baht/share, a decrease of -18.2% compared to this year.”

Nomura Securities Pattanasin added an appropriate value of 33 baht per share, choosing SCB as a top pick, with a more aggressive digital platform and more aggressive in mortgage loans. Support long-term loan yields Therefore, the 2022-2023 earnings forecast has been revised up by 0.4%/0.2% to reflect the direction of better operating efficiency.

Asia Plus Securities sees a positive long-term goal Expecting profit growth in the future about 1.5 times from the present, with a market cap target of about 1 trillion baht in the next 5 years, although the financial goals are quite challenging. From the first profit structure, it still comes from the Siam Commercial Bank, around 85-90%, the other 10%.
Coming from businesses transferred from banks to SCBX and newly established businesses Maintain earnings forecast for 2021 – 2023

However, we believe that in the long term, we will see improvements in ROE, so we can increase our long-term ROE to 10% from 9.2% P/BV at 0.99x (formerly 0.89x) and adjust to an appropriate value in 2022 at 136 baht.

Yuanta Securities maintained its fundamental value this year at 124.50 baht, still projecting a net profit of 35,240 million baht, growing 29.5% based on the lower provisioning base from the previous year.

“SCB has an interesting Catalyst and will be significantly positive in the long run. But in the short term, there may not be much effect of the structural changes. Because more than 90% of revenue and profits still come from the same business,” Yuanta Securities stated.

Siam Commercial Bank expects the period of swapping SCB shares to SCB X will occur around Jan.-Feb. 2022 is expected to be listed on the stock exchange instead around March. and around June SCB pays dividends to SCB X in the amount of 70 billion baht to fund some acquisitions from the bank. or to invest in new businesses Including dividend payment according to the operating results and policies of the group

As for Kasikorn Bank, 4 brokerages give an average target of 149 baht, SCB Securities hit the highest value of 171 baht, Nomura Securities, Pattanasin Securities hit the lowest value at 135 baht, Asia Plus Securities and TIs Securities. Eco assessed the same 145 baht

Nomura Pattanasin Securities Give the target next year at 135 baht because there is a risk of increasing provisioning in the second half of this year. Due to the acceleration in lending in the past and the impact of the protracted covid situation, top pick bank stocks still choose Bangkok Bank (BBL) with a target of 157 baht and TISCO Financial Group (TISCO) at 115 baht because of asset quality. Strengthened by the strictness of lending and accelerating to set aside enough in advance

Which bank stocks do investors prefer now? can buy Most of them are still trading below books and P/E is low, with KBANK trading at P/BV of 0.68 times compared to book value of 192.81 baht and BBL trading only 0.48 times compared to book value of 245.09 baht. Can’t buy at this price on the assumption that every bank would have to accelerate a huge adjustment have a great strategy In the middle of the battlefield, it’s not the same anymore.

Related Articles

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.