Stocks in Focus on March 6, 2020: OSP and BCPG

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

 

Maybank Kim Eng has given a recommendation on Osotspa Public Company Limited (OSP) with a target price at ฿50.00/share.

Maybank picks OSP as the leader of the energy drink market with a 53.5% market share and has a strong financial position with net cash. The 2020 core profit is expected to grow by 12% from the expansion of production capacity for the beverage segment (10-15%). Energy beverage factories in Myanmar started production in 1Q20. Fit Fast Firm project is expected to continue to reduce costs by more than THB500-800m.

 

KGI Securities has given an “Outperform” rating on BCPG Public Company Limited (BCPG) with a target price at ฿22.00/share.

KGI sees a positive tone in yesterday’s analyst meeting. BCPG set an aggressive expansion plan for 2020-2025 with Bt45bn CAPEX and focus on both acquisitions (short term) and greenfield projects (medium to long term). The new wind project (270MWe) in Laos would be a key project to fill up the adder gap and is expected to SCOD in 2023.

KGI preliminarily estimates the potential upside from this project at Bt1.5-1.8/sh. Moreover, KGI also adds Bt1/sh from the Nam San 3B acquisition.

Thus, maintain a rating of Outperform with a 2020 target price of Bt22.00 based on DCF. Given the aggressive expansion plan, we believe there would be additional M&A projects to come in 2020.