Stocks in Focus on September 16, 2021: BCH and LEO

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on September 16, 2021.

 

Capital Nomura Securities (CNS) has given a “BUY” recommendation on Bangkok Chain Hospital Public Company Limited (BCH) with a target price at ฿33.00/share.

CNS estimated BCH’s 3Q21 earnings to reach a yearly high at 1,340 million baht, representing an increase by 224% YoY and 17% QoQ, due to 1) Higher revenue from Covid-19 services (60% of total revenue in 3Q) and 2) higher gross margin at 47% (from 36.6% in 3Q20 and 46.3% in 2Q21).

CNS expected 2021 earnings to increase outstandingly by 211%, pointing out that the current valuation is at 14x, which is lower than its sector that is trading at 59x.

 

Kingsford Securities has given a “BUY” recommendation on Leo Global Logistics Public Company Limited (LEO), citing a target price from IAA Consensus at ฿14.70/share.

Kingsford revised LEO’s 2021 earnings to 2.1-2.2 billion baht, representing a 80-85% growth YoY and from 40-45% growth in earlier forecasts.

The increase would be due to freight rates that were maintained at a high level, including the cargo volume that increased in response to the global economic recovery.

Moreover, 3Q21 is the peak of LEO’s seasonality for transporting cargo before major events at year’s end. The company will also recognize revenue from the partnership with China Post for Thai-China transportation.

In addition, the company is looking for 2-3 M&A deals in Vietnam and Indonesia, expecting to crystalize in 2022.