Stocks in Focus on February 24, 2020: ASK and SABINA

Kaohoon Online has selected stocks with a potential of high growth for investors to consider on February 24, 2020.

 

KGI Securities has given an “Outperform” rating on Asia Sermkij Leasing Public Company Limited (ASK) with a target price at ฿30.00/share.

KGI states that ASK reported a record high 4Q19 net profit of Bt241mn (+11.2% YoY, +6.8% QoQ). The result was in line with KGI’s first forecast. In 2020m KGI expects ASK’s earnings to grow 8.0% to another record high of Bt940mn and expect a dividend of Bt1.86/share.

 

Maybank Kim Eng has given a “BUY” recommendation on Sabina Public Company Limited (SABINA) with a target price at ฿32.00/share.

Maybank states that SABINA’s net profit dropped 17% QoQ on seasonal effects, but rose 28% YoY to THB97m, better than Maybank expected due to higher-than-expected gross margins.

Maybank expects SABINA’s FY20 earnings to continuously expand as a result of both sales growth and margin expansion. SABINA has regularly released new products to increase branded sales via stores. Sales via NSR are expected to grow both online and TV which will reduce selling and administration expenses. In addition, the proportion of sourcing products from overseas (with high gross margins) also tends to continue rising.

In addition, Maybank estimates SABINA’s 3-year CAGR of earnings at 11%. NSR sales and exports still have more rooms to grow from the current low base. The profitability tends to increase on the back of a higher proportion of sourcing products from China and Vietnam.