Stocks in Focus on January 6, 2020: PTTEP and ADVANC

Kaohoon Online has selected stocks with a potential of high growth for investors to consider on January 6, 2020.

 

Asia Wealth Securities (AWS) has given a “BUY” recommendation on PTT Exploration and Production Public Company Limited (PTTEP) with a target price at ฿147.00/share.

AWS states that the tension situation between the US and the Middle East is expected to make crude oil prices continue to increase. We estimate the average Dubai crude oil price in 2020 to be at US$60.00, down from US$63.00, however, we anticipate that the situation to be prolonged. Positive factors from high oil prices might affect PTTEP and PTT the most. Every US$1 increase in crude oil price, PTTEP’s net profit might increase by Bt2.08bn or 5.0%.

Despite being pressured by the strength of the baht which AWS expects the average Thai baht in 2020 at Bt30.00 per US dollar, every Bt1.00 appreciation, resulting in PTTEP’s net profit of Bt3.4bn, or 5%. There is a likelihood that the crude oil price might rise more than US$1.00 from US$60.00. We recommend buying PTTEP with a target price of Bt147.00.

 

Finansia Syrus Securities (FSS) has given a “BUY” recommendation on Advanced Info Service Public Company Limited (ADVANC) with a target price at ฿260.00/share.

FSS states that the National Broadcasting and Telecommunications Commission (NBTC) will hold the bidding for the concession of 2600 MHz on February 16, 2020, which believes that there will be no new competitor other than the three telecommunication operators to participate in this bidding while the competitiveness should not be too high.

Moreover, FSS forecasts ADVANC’s FY20 profit to grow 8% YoY to 32.4 billion baht and another 8.6% in 2021 YoY. ADVANC has PE at 18x, lower than the historical average at 22x while it is likely to have 2% of dividend yield.