Stocks in Focus on April 15, 2020: BJCHI and BEM

Kaohoon Online has selected stocks with a potential of high growth for investors to consider on April 15, 2020.

 

Maybank Kim Eng has given a “T-BUY” recommendation on BJC Heavy Industries Public Company Limited (BJCHI) with a target price at ฿2.50/share.

Maybank states that BJCHI acquired THB750m worth jobs to support the backlog up to THB4.7b. Meanwhile, there will be more from THB17b worth auctions in the future and the management estimates this year’s revenue at THB3b, soaring 50%.

In this regard, Maybank forecasts a revenue of THB2.75b this year, a jump of 36% and profits of THB268m, a skyrocketing of 468%. BJCHI has a strong financial status, no debt and high cash in hand, with a high dividend yield of 8.2%. Thus, Maybank recommends a TRADING BUY for dividend with a target price at THB2.50.

 

KGI Securities has given an “Outperform” rating on Bangkok Expressway and Metro Public Company Limited (BEM) with a target price at ฿10.00/share.

KGI expects BEM to report 1Q20 earnings of Bt332mn (-61.3% YoY, -36.3 % QoQ). The drop YoY would be due a decline in average daily toll traffic and absence of equity income. The 2Q20 earnings expected to drop YoY and QoQ due to the full impact of the “stay home, stay safe, save lives” campaign to combat the Covid-19 outbreak together with shorter operating hours which we already factored into our earnings forecasts.

In this regard, KGI maintains a rating of Outperform with a 2020 target price of Bt10.00 based on SOTP. BEM’s earnings should bottom out in 2020 and we expect 19.6% CAGR in 2020 – 2023 if the pandemic ends this year, as travel behavior should return to normal. Medium-term upside for the company would be from MRT Orange Line West.