Stocks in Focus on 2 August 2019: PSL and EA

On August 2, 2019, Kaohoon Online has selected two stocks with a potential of high growth for investors to consider.

Finansia Syrus Securities stated that the 2Q2019 loss of Precious Shipping Public Company Limited (PSL) was lower than the market had expected. A net loss of PSL was THB 141 million which the market expected a net loss of THB 10-20 million. Even if excluding a total of THB 22 million of employee benefit, PSL’s profit is still worse than a 1Q2019 profit-loss of THB 84 million and a 2Q2018 profit of THB 92 million. The average daily income per cruise decreased 3% QoQ, 16% YoY but the expenses of the cruise was higher than PSL’s target, especially repair and maintenance costs. Finansia expected a 2H2019 PSL’s profit to be better and believed PSL’s business to recover but PSL should be aware of a freight charge (BDI) that might slowdown after it has been increasing for an entire year, and the endless of the trade talks between the U.S. and China. Therefore, Finanasia recommended “HOLD” PSL share with the target price of ฿9.00/share.

KTB Securities (KTBST) recommended “BUY” Energy Absolute Company Limited (EA) share with the target price of ฿57.00/share and expected a 2Q2019 to hit a new high. Moreover, the 2Q2019 is the first quarter of EA to recognize revenue from a full capacity of all the solar and wind power plant projects in a total of 664MW. Additionally, the biodiesel business’s profit has increased from an increase in the sales price and sales volume.
Currently, the government supports the biodiesel business by supporting to use B10 instead of B7, resulting in a demand of B100 to increase higher. Therefore, EA Factory, which could produce 8K liters of B100 per day, will earn a higher profit than normal. KTBST said EA’s share price is not expensive because EA has a high ROE highly to 35% while PE 26x in 2019 and PEG lower than 1x.