Stocks in Focus on 8 August 2019: MTC and INTUCH

Kaohoon Online has selected two stocks with a potential of high growth for investors to consider on August 8, 2019.

KTB Securities (KTBST) Recommended “BUY” Muangthai Capital Public Company Limited (MTC) share with the target price of ฿68.00/share based on 2020E PBV 7.0 (5Years average PBV). MTC announced a net profit of 2Q2019 at THB 1.02 billion, increasing 12% YoY, 2% QoQ which was closed to KTBST estimation but it was still lower than the market had expected of 7%. An increase in NPLs has also affected an increase of 20% YoY and 62% QoQ of provision. KTBST has still estimated MTC’s 2019 profit to increase 18% YoY to 4.4 billion. The profit of 6M19 was accounted for 46% of MTC’s whole year profit.  KTBST has also believed that MTC’s performance in the first half of 2019 will be better and continue to grow from a better loan yield, especially releasing the motorcycle hire purchase.
Furthermore, the share price of MTC has increased and outperformed SET by 26% in the past 3 months from a belief in a rise of net profit and a positive effect of 0.25% of the interest rate cut from the announcement policy of MPC yesterday (07 Aug 2019).

 

Finansia Syrus Securities recommended Intouch Holdings Public Company Limited (INTUCH) to be a defensive stock which sought from a high risk of the market. The main profit of INTUCH depends on ADVANC which has returned to its usual path after the decrease of price competition while THCOM only contributes less than 1% of INTUCH’s profit. INTUCH paid 2.1% of dividend yield or ฿1.35/share with XD date on 19 Aug 2019 which is higher than the dividend yield of ADVANC at 1.7% or ฿3.75/share with XD on 16 Aug 2019. The share price of INTUCH has the potential for upside but ADVANC has already reached its full value while INTUCH has a cheaper valuation.