Stocks in Focus on February 20, 2020: BCPG and MEGA
Stocks in Focus on February 20, 2020: BCPG (KGI Securities TP at ฿21.00/share) and MEGA (Kasikorn Securities TP at ฿41.50/share).
Kaohoon Online has selected stocks with a potential of high growth for investors to consider on February 20, 2020.
KGI Securities has given an “Outperform” rating on BCPG Public Company Limited (BCPG) with a target price at ฿21.00/share.
KGI states that BCPG reported a 4Q19 core profit of Bt430mn (+6.1% YoY, +5.0% QoQ), which was 8.9% below its forecast mainly due to lower than expected equity income from Geothermal in Indonesia. Including extra items, 4Q19 net profit was Bt445mn (+43.5% YoY, +10.9% QoQ). Full-year core profit was Bt1.7bn (+2.1% YoY), which was in line with KGI’s full-year forecast.
In addition, KGI expects BCPG’s 1Q20 earnings to likely increase YoY and QoQ due to i) full-quarter contribution from Nam San 3A, ii) half-quarter contribution from Nam San 3B, and iii) higher capacity factor for Thailand solar.
Kasikorn Securities has given a “BUY” recommendation on Mega Lifesciences Public Company Limited (MEGA) with a target price at ฿41.50/share.
KS expects MEGA’s 4Q19 earnings at Bt378mn (-7% YoY +34% QoQ) while 2020 earnings are likely to recover as MEGA will benefit from a weaker baht. Every Bt1/USD depreciation will drive earnings by 5%. In the long term, MEGA will enjoy decent growth from expansion in countries with high growth rates, such as Indonesia and Myanmar.