ADB : Low PE, Record-Breaking Profits

ADB’s performance in the first half was extraordinary. Because the business enters the period that receives positive factors from Covid-19 directly, causing a large increase in sales The main business is Compound plastic products Sold to wire, cable and medical factories. The glue business is sold to the automotive group. furniture etc.

6-month profit grew by 180% as a result of the electric wire business and cable that grows from the expansion of large government projects resulting in a large increase in the purchase of plastic pellets.

…In addition, the plastic pellets that are used in the manufacture of medical equipment Medicine is growing very fast. such as saline various liquid bags This strong sales force makes margins break a record above 8%, pushing up profits. It is expected that the full year 64 will hit the company’s highest record…

The good news is that we are joining forces with partners to penetrate the skin care business as well, and we may see an accelerated income from this line. Recently, the PE is as low as 12 times, and the full-year profit is expected to exceed 100 million baht, unprecedented. Estimated eps around .22, when using only 15 times PE, the target will be 3.30 baht, with more than 55% upside.

► W-shape birth graph

The ADB chart is in the process of forming a W-shape pattern, with a stoch crossing over as a buy signal supporting the candlestick chart. This will give the share price a chance to bounce to the forearm at 2.60 baht next, recommend buying.