Shares of Sun Vending Technology Plc (SVT), a vending machine operator, jumped further by 27 per cent on Friday in a fourth straight day of rise after its first trading day on the Stock Exchange of Thailand (SET) this week.
SVT peaked at 7.45 baht, up 27.35 per cent from its prior closing, before settling at 7.15 baht, still up 22.22 per cent, by midday. The stock accounted for the second-biggest trading value of 3.6 billion baht in the morning session.
On Tuesday, SVT began trading at its initial public offering price of 1.78 baht before skyrocketing by around 30 per cent each day, the cap provided by the SET, to over 7 baht as of Friday’s midday, as investors were bullish on the company’s strong fundamentals.
“SVT is a market leader in the vending machine industry,” Krungsri Securities analysts wrote in a note. “We see SVT as a business that earns recurring income from its necessary items in vending machines,” said Ekasit Kunadirekwong.
Krungsri added that SVT earnings will grow exponentially in the next few years backed by the recovery in demand from improved Covid-19 situation.
Currently SVT operates 13,884 vending machines across 26 provinces nationwide. About 70 per cent of those are located in industrial sites in Rayong, Chonburi, and Ayutthaya province.
Apassara Panupatthana, SVT’s managing director, said the company aims to increase the machines to 20,000 units by 2023.
However, the overwhelming sentiment on SVT has pushed its price to higher than Krungsri’s target of 3.1 baht, which could trigger profit-taking selloffs on the stock anytime soon, while the target price from Nomura Securities is 3.5 baht.