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Hemp-based stocks raise the panel, warned of “expensive prices – look at investment timing.”

The broker pointed out that 13 stocks hug the neck plus receive the benefit of hemp. “Asia Securities Plus” assesses the business still takes 3-4 months to “plant-extract” prenatal hemp oil, the product is sold. Warns that stocks in the group are starting to be expensive, P/E close to 30 times, “Kasikorn Securities” reveals that the hemp market is growing quite strongly abroad. In the country, it is expected that the 4th quarter can use the output.

Mr. Chanchai Pantathanakit, Investment Strategy Manager Asia Plus Securities Company Limited, revealed “Prachachat Business” that on February 5, 2021, Asia Plus Securities Research Department attended the meeting, “FDA (Food and Drug Administration) met analysts to update the issue. Hemp Industry Progress” After January 29, 2021, the new Hemp Ministerial Regulation was published in the Government Gazette, allowing Thai people, both farmers, and the general public, to apply for permission to plant hemp.

However, in the overall picture of the current Thai CBD kaufen industry, Asia Plus Securities Research Department views that upstream businesses (growers) and midstream businesses (extractors) still need some time and also face the problem of supply (supply) that is still scarce On the contrary, downstream businesses, which are listed companies (listed companies) on the Stock Exchange of Thailand that want to use hemp as an ingredient or ingredient, have a very high demand.

When considering the business, Potential downstream business stocks such as: 

  1. Food group: Exotic Food Public Company Limited (XO) and R&B Food Supply Public Company Limited (RBF).
  2. Beverage group: Sappe Public Company Limited (SAPPE), Ichiban Group Public Company Limited (ICHI), Osotspa Public Company Limited (OSP), and Malee Group Public Company Limited (MALEE).
  3. Spa group: Siam Wellness Group Plc. (SPA) 4. Cosmetics group: Do Day Dream Plc. (DDD), Kmart Pcl. (KMART) and Plc. Beauty Community Plc. (BEAUTY) and 5. Food supplement groups, namely RS Plc. (RS), DOD Biotech Plc. (DOD) and Mega Life Plc. Science (MEGA).

“Currently, although the FDA allows the use of seeds and seed oils as ingredients in cosmetics. and food But the important thing is to take CBD kaufen or substances that relax. Alleviating pain, etc., which are expected to actually take place in March and April, respectively,” Mr. Chanchai said.

Mr. Chanchai also said that From the period of operation above, it is recommended to invest in stocks related to hemp. It should be a medium to long-term investment. This is because hemp production is expected to last at least 3-4 months. by more than 10%, so investors must choose to invest carefully.

In this regard, Asia Plus Securities has chosen SAPPE as an outstanding stock for investment. Because the valuation has not increased much compared to other stocks in the same group. The share price-to-earnings (P/E) is lower than the SET food index of 26.7 times and forecasts 4Q20 earnings to continue to 2Q21 to recover quarter-on-quarter. (QOQ) and year-on-year (YOY) recommend buying at a target price of 26.00 baht.

While Mr. Soraphol Wirameteekul, senior director of securities analysis at Kasikorn Securities Company Limited, said that after the FDA opened for permission to operate hemp business on January 29, it found that In the Thai stock market, more than ten companies have shown interest in this issue. However, the cultivation period is 4-5 months, so it is expected to collect the harvest for the extraction of CBD kaufen oil in the 4th quarter of 2021.

“Overseas, hemp has been used in the food and beverage business in the past 4-5 years, and it has been found that the hemp market has grown quite strongly. But the base is still low, for example, hemp beverages still account for less than 0.1% of the total beverage market. but with rapid development, therefore have a weak optimism by recommending top stocks RBF and CBG (Carabao Group PCL),” said Sophos.

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