Stocks in Focus on 1 August 2019: SISB and PTG

On August 1, 2019, Kaohoon Online has selected two stocks with a potential of high growth for investors to consider.

Finansia Syrus Securities recommended “BUY” SISB Public Company Limited (SISB) share with the revised target price of ฿9.20/share from the previous target price of ฿8.84/share. Finansia has also expected a 2Q2019 profit to increase 21% QoQ, 147% YoY to THB 51 million from an increase in the number of students, expecting to increase 70 people to 2,375 people (excluding Chiang Mai branch, Thailand).
SISB’s 3Q2019 profit will be better in August because a new semester has started and a yearly increase of 5% tuition fee. However, if the number of students is equal to a 2Q2019, the profit will increase by 10-12% because mostly the cost of SISB is a fixed cost. As a result, Finansia has revised a 2019 profit to increase 20% to 215 million, increasing 108% YoY and a 2020 profit to increase 14% to 288 million, increasing 34% YoY based on the operating leverage.

 

KTB Securities (KTBST) recommend “BUY” PTG Energy Public Company Limited (PTG) share with the target price of ฿23.50/share. KTBST stated that Palm Complex projects of PTG will acquire a positive effect from the Ministry of Energy’s policy. The policy has supported the biodiesel business both in pricing and consuming B10 or B20 oil instead of B7 oil. As a result, a market of B100 oil was tight and the demand for B100 oil has increased 7% which currently, the demand is 4-5 million liters/day.
PTG has a low downside risk in terms of biodiesel business because there is a captive demand through their own petrol station which PTG oil production is usually sold out. Currently, the capacity of PTG oil production is 450k liters/day while 400-500k liters of oil has been selling through PTG petrol station per day. Moreover, KTBST said that PTG’s market value is more stable because the petroleum product price has not fluctuated like last year, while PTG has also continued to expand PTG’s branches as well.