Stocks in Focus on January 27, 2020: SEAFCO and HMPRO

Kaohoon Online has selected stocks with a potential of high growth for investors to consider on January 27, 2020.

 

KGI Securities has given an “Outperform” rating on Seafco Public Company Limited (SEAFCO) with a target price at ฿7.90/share.

KGI expects SEAFCO to report 4Q19 earnings of Bt53mn (-54.9% YoY, -48.6% QoQ). The decline would be due to the completion of large-scale projects and only partial construction area handover of the Dusit Central Park project. SEAFCO has a current backlog of Bt2.2bn as of January 2020 which already secures 56% of KGI’s 2020 revenue projections.

The delay in the 2020 budget bill would give negative sentiment in the short-term. Meanwhile, the awarded projects such as Rama III – Dao Kanong expressway and high-speed train projects linking three airports would be key projects to increase SEAFCO’s backlog in 2020. In this regard, KGI maintains a rating of Outperform with a 2020 target price of Bt7.90 based on long-term average PER+0.5SD of 16.0x. The short-term catalyst would be a new backlog from Rama III- Dao Kanong expressway.

 

Maybank Kim Eng has given a “Trading Buy” recommendation on Home Product Center Public Company Limited (HMPRO) with a target price at ฿18.20/share.

Maybank states that even though the SSSG in 4Q19 would contract due to a slow down in demand, the net profit would still post an increase both in QoQ and YoY from HMPRO’s higher gross profit margin and operating performance.

HMPRO’s 2020 performance is expected to continue its growth from an increase of branch expansions and net profit margin.