Stocks in Focus on 29 August 2019: JWD and SEAFCO

Kaohoon Online has selected two stocks with a potential of high growth for investors to consider on August 29, 2019.

Finansia Syrus Securities stated that JWD Infologistics Public Company Limited (JWD) has grown sharply after announcing a 1H2019 net profit of ฿189 million, increased 87% YoY. Additionally, JWD also recognized a profit-sharing from the company’s investment in the last two year.
As a result, Finansia viewed a positive growth on JWD in 2H2019 because it will be a high season of logistic business, food, cold storage, and selling the land to Chinese investors that moved the base production to Phnom Penh industrial or Phnom Penh Special Economic Zone. The 1H2019 net profit calculated an estimate of 46% from the profit of the whole year in 2019 which Finansia expected the profit to grow 47% YoY, 20% QoQ to ฿370 million. Moreover, Finansia expected that JWD profit will continue to rise 20% YoY next year and recommended “BUY” the target price of ฿12.0/share.

AIRA Securities stated that SEAFCO Public Company Limited (SEAFCO) has the backlog on hand in 2Q2019 approximately THB 2,337 million, increased THB 1,871 million. Although the overall construction industrial sector has affected from the delay of a government project, SEAFCO continued to acquire new projects, especially the private sector.
Revenue from the private sector helped to compensate for a construction revenue in 1H2019 with a total amount of THB 1,625 million. Moreover, SEAFCO is also waiting for the bidding result of 91 projects with a value of THB 20,000 million while SEAFCO set the target for the new project approximately THB 750 million per quarter or THB 3,000 million in 2019.
AIRA stated that SEAFCO’s growth in 2H2019 will be quite slow down comparing to 1H2019. However, AIRA expected that a whole year turn over in 2019 will continue to outstanding and follow the target of SEAFCO both construction revenue which expected to not lower than THB 3,000 million and the ability to mark a profit. AIRA expected a gross profit margin of SEAFCO to grow 21 – 22% which will make a net profit to increase 16% to THB 428 million. As a result, an increase in 16% of net profit will be a new high of SEAFCO in many years. AIRA estimated the target price in 2019 at ฿11.50 based on PE 20x (average past 5 years) and recommended “BUY” SEAFCO share from a continuous growth of performance and interesting dividend yield at 4.0%.