Stocks in Focus on May 18, 2020: TCAP and CBG
Stocks in Focus on May 18, 2020: TCAP (KGI Securities TP at ฿57.00/share) and CBG (KGI Securities TP at ฿112.00/share).
Kaohoon Online has selected stocks with a potential of high growth for investors to consider on May 18, 2020.
KGI Securities has given an “Outperform” rating on Thanachart Capital Public Company Limited (TCAP) with a target price at ฿57.00/share.
KGI stated that TCAP reported 1Q20 earnings of Bt4.6bn (+13% YoY). The result was 43% above KGI’s forecast and 28% above the market consensus due to higher than expected gain on investment, fee income, and operating cost control. Although 1Q20 earnings accounted for 70% of KGI’s full-year earnings forecast, the security company still maintains the forecast due to anticipated weak earnings in 2Q20.
KGI Securities has given an “Outperform” rating on Carabao Group Public Company Limited (CBG) with a target price at ฿112.00/share.
KGI stated that CBG’s CEO guided for on-going earnings improvement from solid export growth to CLMV, lower cost of production to boost margin, and success of new product launch.
KGI revised up its earnings forecasts by 15% in 2020 and 18% in 2021, mainly reflecting i) margin increasing 200bps to 40% each year due to the continued low price for aluminum sheets, and ii) revenue from C-Lock of Bt750mn/Bt1.2bn in 2020/2021. Applying PE of 33.5x (PEG 1.0x, 3-yr avg PE), KGI reached a new target price of Bt112, up from Bt94.00.