We maintain a BUY recommendation on TEAMG as we increase the target price to Bt2.81 from Bt2.42, implying an upside of 17% from the current share price. We derive our target price from a DCF-based valuation using a WACC of 7.4% and a terminal growth rate of 2%.
Investment thesis:
Interim: Although the completion of projects was delayed due to the COVID-19 outbreak, TEAMG delivered strong results. Besides, TEAMG’s efforts to enhance permanent cost control have led to a significant upward revision of net profit.
Risks: Recruitment of qualified personnel, delay in project completion, changes in government policies, increased competition from overseas, failure to keep pace with technological trends.
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