Stocks in Focus on April 16, 2020: AOT and OSP

Kaohoon Online has selected stocks with a potential of high growth for investors to consider on April 16, 2020.

 

Asia Wealth Securities (AWS) has given a “BUY” recommendation on Airports of Thailand Public Company Limited (AOT) with a target price at ฿70.00/share.

AWS expected AOT’s net profit of 2Q20 (Jan-Mar 20) at Bt3.38bn, down 54% QoQ and 55%YoY, which also expected earnings to bottom out in 3Q20 (Apr-Jun 20) after the first 11 days of flight statistics, the number of flights and passenger numbers decreased by 92.1%YoY and 98.1%YoY receptively.

AWS expects the company to have a net profit in 2020 at Bt7.8bn, down 68.8%YoY (down from the previous estimate of 71%), adjusting the target price to Bt70.0 (previously Bt79.0) but reiterating “BUY” as a suitable stock for long-term investment.

 

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

Maybank asserts that OSP’s earnings are expected to grow favourably despite the Coivd-19 pandemic. Meanwhile, OSP’s products such as M-150 and Cevitt beverages have enjoyed increased sales and market share. Gross margin will also increase on the back of cost efficiency and lower sugar tax. The new product launch and capacity expansion remains as planned. Moreover, OSP also has net cash and is among companies with limited impact from the Covid-19.