Stocks in Focus on 19 July 2019: GFPT and JWD

KGI Securities (KGI) recommended “BUY” GFPT Public Company Limited (GFPT) share with the target price of ฿19.7/share and set a support line at ฿17.9 and ฿17.7 while set resistance at ฿18.4 – ฿19 (stop loss at ฿17.5).
KGI estimates a high demand of chicken due to the African Swine Fever (AFS) crisis in pork. It was divided into two cases. Firstly, if the AFS crisis is not spread in Thailand but it spreads in other countries, the high demand of the chicken exportation will continuously high. Secondly, if the ASF crisis has spread in Thailand, the high demand of the chicken will be higher than pork.

KGI viewed the potential of investors to switch from TFG and CPF to GFPT by using risk and reward ratio method. KGI expected that Thai baht is not too strong due to a measure to prevent Thai baht speculation of BOT which GFPT export the products more than 50% of the total revenue.

Finansia Syrus Securities expected a 2Q2019 profit of JWD Infologistics Public Company Limited (JWD) to grow 65% YoY to ฿81 million from a revenue recognition in the first quarter of Transmex, JWD holds 23.66% share, which is the third biggest logistics company in Vietnam. Finansia also estimated a net profit to post a 10% loss QoQ because of the low season and the asset acquisition fee payment. If all the above-mentioned issues are in line with the expectation, a 2H2019 profit will increase by 88% YoY.

In addition to the 2H2019 of JWD, it tends to be better due to a high season and a revenue recognition of the investment in Taiwan, Cambodia, and Vietnam last year. Moreover, JWD was not affected by the trade war because the cold storage business is in the food sector.
In terms of the industrial in Phanom Pehn, Finansia expected a 2019 profit to increase 53% to a new high at ฿370 million due to moving a production base of China.
Therefore, Finansia Syrus recommended “BUY” JWD share with the target price of ฿12/share.