Stocks in Focus on October 21, 2019: BBL and COM7
Stocks in Focus on October 21, 2019: BBL (KGI Securities TP ฿227.0/share) and COM 7 (KTBST TP ฿32.00/share).
Kaohoon Online has selected two stocks with a potential of high growth for investors to consider on October 21, 2019.
KGI Securities (KGI) – Bangkok Bank Public Company Limited (BBL) with a buy recommendation and a target price at ฿227.0/share.
KGI has made an analysis after BBL reported 3Q19 earnings of Bt9.4bn (+1% QoQ, +4.5% YoY). The result was 9% above KGI’s forecast and 6% above the market consensus. The bank’s 9M19 earnings were Bt27.1bn (+2% YoY), accounting for 72% of KGI’s full-year forecast and 76% of the consensus forecast.
KGI sees positive developments in the quarterly result; i) improving loan yield and margin amidst rate cut, ii) broad-based improvement in fee income items, and iii) solid earnings despite booking lower gain on investment. With encouraging signs of further earnings improvement in 4Q19 from both increased lending and potentially lower LLP, KGI maintains its earnings forecast and rates the counter Outperform with a 12M-target price of Bt227 (based on PE 11x, PBV 1.0x).
KTB (Thailand) Securities (KTBST) – COM7 Public Company Limited (COM7) with a buy recommendation and a target price at ฿32.00/share.
KTBST reiterates BUY rating on COM7 with an unchanged target price of Bt32.00, which is pegged to 2020 PER of 27.0x, or +0.5 SD above 4-yr average level. KTBST expects a strong response toward iPhone 11 series to boost significantly COM7’s revenue in 4Q19E and 1Q20E. A new shop display theme of IoT in early 2020 and an upcoming 5G technology around late next year would provide support to COM7’s sales in 2020E.
KTBST expects 2019E/20E revenue to grow +18%/16% to Bt33bn/Bt38bn. Coupled with lower logistics and operating costs, KTBST maintains its 2019E/20E net profit estimates at Bt1.19bn (+34% YoY)/Bt1.42bn (+19%).
COM7’s share price has outperformed the SET Index by 23% over the past three months in light of rising iPhone sales. KTBST likes COM7 in terms of bright long-term earnings outlook, driven by higher store count, its effective online channel, and synergy benefit with BTS, as well as an upcoming 5G era in late 2020.