Stocks in Focus on March 23, 2020: BJC and MTC

Kaohoon Online has selected stocks with a potential of high growth for investors to consider on March 23, 2020.

 

KTB Securities (Thailand) (KTBST) has given a “BUY” recommendation on Muangthai Capital Public Company Limited (MTC) with a target price at ฿75.00/share.

KTBST states that MTC’s share price slumped 32% in a one-month period and thus underperformed the SET Index by 8% due to the negative sentiment in the wake of the COVID-19 outbreak.

KTBST does not expect a significant impact from the COVID-19 outbreak as 1) MTC’s high default-risk accounts account for just 36% (the blue-collar group of 20% and white-collar customers of 16%) of its loan portfolio, 2) MTC would introduce some measures to help its customers by offering a revolving line of credit and an extension of repayment terms, which are waiting for  the BoT’s approval.

Additionally, KTBST estimates MTC’s net profit to grow significantly at 24% CAGR in 2019-21E. Key downside risk is the slow loan growth amid higher NPL outlook given a weaker debt servicing capability following the partial lockdown in many areas in Bangkok and vicinity.

 

Maybank Kim Eng has given a recommendation on Berli Jucker Public Company Limited (BJC) with a target price at ฿53.00/share.

Maybank states that the SSSG of consumer product operators recovered in March, benefiting from stockpiling due to Covid-19 fears. Thus, Maybank expects BigC’s SSSG to recover from negative to a slight positive while BJC sees a significant rise in sales of consumer goods such as tissue paper and soap.