Stocks in Focus on 30 August 2019: MTC and PTT

Kaohoon Online has selected two stocks with a potential of high growth for investors to consider on August 30, 2019.

Finansia Syrus Securities recommended “BUY” Muangthai Capital Public Company Limited (MTC) share with the target price of ฿64.00/share. Finansia also said that Bank of Thailand (BOT) has not announced to use the measurement of debt service ratio (DSR) limit, a measurement to control the household debt problem, with retail loans help to directly unlock the pressure of consumer finance. It will also be a good time because the second half of the year is the season of loan approval.
Moreover, MTC will be benefited from a downtrend of interest rate (lower financial costs). Finansia expected MTC’s 3Q2019 profit to increase 13% QoQ, 20%YoY and continued to hit a new high.

KTB Securities (KTBST) stated that the share price of PTT Public Company Limited (PTT) has recovered yesterday by 5.49% from the lowest level, KTBST believed that the momentum of PTT will be higher because PTT’s share price was decreased by 12% in the past 1 month. PTT has 4% of dividend yield per year which KTBST expected PTT will pay a dividend of ฿0.80/share. KTBST said that PTT’s share price is traded at PE 10x in 2019 which is lower than 11x of the average PE in the past 7 years and the price is lower than the fundamental at ฿45.00. An increase of gross refinery margin (GRM) and PTTEP production capacity from a revenue recognition of the investment in new gas resources in the 1H2019, therefore, KTBST expected the 2H2019 growth of PTT to increase. In the 1H2019, PTT’s Gas separation plant could operate higher than the 1H2019, although the margin of petrochemical business is still weak and earn the lowest revenue in the group. PTT expected PTTOR to enter SET within 1 year after presenting the information to Energy Ministers this September as PTT had expected the IPO in 2Q2020.