Stocks in Focus on February 4, 2020: ADVANC and CHG

Kaohoon Online has selected stocks with a potential of high growth for investors to consider on February 4, 2020.

 

Krungsri Securities (KSS) has given a “BUY” recommendation on Advanced Info Service Public Company Limited (ADVANC) with a target price at ฿257.00/share.

KSS states that the market was afraid of new competitors other than ADVANC, TRUE, DTAC, TOT and CAT to participate in the 5G bidding, but the market has a positive response over the news reported that only five private companies participated in the bidding. KSS sees that the plummet over 9% in the past week is due to the award of arbitration ordering ADVANC to pay a compensation of 31 billion baht to TOT, and that the negative sentiment over the issue has been priced in.

 

Maybank Kim Eng has given a recommendation to accumulate Chularat Hospital Public Company Limited (CHG) with a target price at ฿3.20/share.

Maybank expects 4Q19 earnings should increase by 10% driven by revenue from cash patients increasing 14-15% YoY. However, revenue from SSO patients tends to fall 1-2% YoY as the office temporary cut reimbursement for IPD case. Still, the core earnings should manage to expand by 8% YoY to THB120m in 4Q19 and core earnings for 2020 should jump 24% YoY. This makes it more attractive for investors to accumulate stocks.