Stocks in Focus on 26 August 2019: AMATA and BGRIM

Kaohoon Online has selected two stocks with a potential of high growth for investors to consider on August 26, 2019.

Finansia Syrus Securities recommended “BUY” AMATA Corporation Public Company Limited (AMATA) share with the target price of ฿28/share. AMATA’s 1H2019 profit increased 15% to THB 693 million YoY or calculated as an estimate of 41% from the profit of the whole year in 2019 which Finansia expected AMATA profit to grow 38%. Moreover, AMATA also has THB 3.75 billion worth of backlogs to support a 1-year revenue. Finansia said that a high sales and demand of land in Rayong and AMATA Thai-Chinese zone, therefore, AMATA remains the sales target of land in Thailand at 950 Rai. In 1H2019, AMATA sold lands more than 200 rai and there are many customers who are negotiating. As the result of the trade war between the U.S. and China, many customers from China, Japan, and Korea have moved the based production to Thailand, especially China which currently is 30% of the sales portion. Additionally, AMATA sells not only the land but water, electricity, and rentals around 50%. 

AIRA Securities expected B.Grimm Power Public Company Limited (BGRIM) to grow continuously in 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.
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.

Recently on Friday, 23 August 2019, FTSE announced the index rebalancing including KTB, BGRIM, and PLANB by using the closed price on 20 September.
There are many Thai Stocks have been included in this index rebalancing including FTSE all world divided into the large cap which is KTC and mid-cap which is BGRIM, while PLANB was included in the small-cap.  All of these will be effective by using the closing price on 20 September.