Stocks in Focus on 24 July 2019: PTTEP and MAJOR

Finansia Syrus Securities stated that PTT Exploration and Production Public Company Limited (PTTEP) will announce its 2Q2019 financial statement by tomorrow (25 July 2019) and a profit of PTTEP will be the most highlighted stock in the sector. Finansia expected PTTEP profit to increase 3% QoQ and 258% YoY to THB 12.8 billion from an increase of products volume and sale price, a good cost controlling and baht appreciation which was an advantage for tax payment.
Moreover, the investment in Murphy Oil (2H19), Partek (2020), Algeria Hassi Bir Rekaiz Project (2021), and a new concession of Bongkoch-Erawan (2022) will support a future profit growth of PTTEP.
Therefore, Finansia Syrus recommended “BUY” PTTEP share with the target price of ฿150.0 /share.

Finansia Syrus Securities expected Major Cineplex Group Public Co. Ltd. (MAJOR) to earn THB 495 million of profit in 2Q2019, increasing 180% QoQ due to lots of box-office movies, such as, Avengers Endgame which is the highest-grossing films of all time and earned THB 750 million or the revenue. Additionally, the other movies such as John Wick 3, Godzilla2 and Aladdin also earned THB 100 – 400 million for each movie.
However, Finansia estimated the profit to increase only 6% YoY because in 2Q2018, there were many high grossing films while 3Q2019 profit is expected to slow down when compared to the previous year due to a low season of the movie, but a whole year profit will increase 27% YoY. Finansia expected that a 2H2019 dividend of MAJOR to be ฿0.65/share (Yield 2.2%) and recommended “BUY” with the target price of ฿33.00/share.