Stocks in Focus on 13 August 2019: BGRIM and BCH

Kaohoon Online has selected two stocks with a potential of high growth for investors to consider on August 13, 2019.

 

AIRA Securities expected B.Grimm Power Public Company Limited (BGRIM) to grow continuously in a 6-7 year from operating the solar power plants in Thailand, Laos, and Vietnam which will raise BGRIM’s total generating portfolio to 3,245 MW in 2022 from 2,076 MW in 2018.
On 17 June 2019, BGRIM informed the SET to operate a commercial operation of two solar power plant projects in Vietnam which are DT1 (BGRIM holds 55% share) and DT2 (BGRIM holds 55% share) project with the total capacity of 420MN, COD on 3 June and 13 June 2019, respectively and Phu Yen TPP project (BGRIM holds 80% share) which had COD on 10 June 2019. Furthermore, BGRIM is negotiating to operate power plants in many countries, such as Korea, Taiwan, Philippines, and Malaysia based on the strength of BGRIM network in other countries. AIRA said that BGRIM’s share price is traded at PE 28x, based on 2020 PE and expected to pay 1.2% dividend yield. Therefore, AIRA recommended “buy for investment” BGRIM share with the target price of ฿39.00/share based on DCF method.

KTB Securities (KTBST) recommended “BUY” Bangkok Chain Hospital Public Company (BCH) share with the target price of ฿19.10/ share based on DCF method (WACC=7%, Terminal growth = 3%). BCG recorded its 2Q2019 net profit of THB 244 million, decreasing 2.4% YoY, which was lower than the market had expected at 6%. BCH profit has decreased when compared to the same previous last year due to a provision for employee benefit derived from new labor law and the opening of Kasemrad Ramkhamhaeng at the end of last year.
Furthermore, KTBST expected 2019 of BCH net profit to grow 6% YoY to THB 1.16 billion with 3Q2019 earnings to return to a strong growth path given the benefit of seasonality and SSO revenue. The share price of BCH has declined 16% in the past 3 months due to an increase of only 6% of 1H19. However, KTBST believed BCH’s share will come back to outperform. KTBST also sees a rebounding in view of better 3Q2019 outlook from a 3Q2019 profit growth.