Stocks in Focus on April 22, 2020: BCPG and RS

Kaohoon Online has selected stocks with a potential of high growth for investors to consider on April 22, 2020.

 

Krungsri Securities (KSS) has given a “BUY” recommendation on BCPG Public Company Limited (BCPG) with a target price at ฿19.80/share.

KSS states that BCPG is not affected by the government’s decision to waive power bills (will use the central budget). BCPG is a defensive stock that is trading at only 10x PER while consistently paying 5-6% annual dividend yield vs 2% by peers. Moreover, BCPG’s growth will be driven by new capacity at Nam San 3A and 3B projects in Vietnam, Swan wind project (270MW) in Laos, and four solar projects (75MW) in Japan.

 

KGI Securities (KGI) has given an “Outperform” rating on RS Public Company Limited (RS) with a target price at ฿12.00/share.

KGI expects RS to report a 1Q20 net profit of Bt106mn (+62% QoQ, -4% YoY). The strong growth QoQ would be driven by increased product sales and one-time sales of media content to partners. The decline YoY would be due to lower product sales compared to the high base in 1Q19 and a slowdown in revenue from the media segment.

Though 1Q20 earnings would account for 28% of its full-year forecast, KGI is maintaining the forecast for 2020 at Bt378mn as earnings are expected to slow in 2Q20, with the full quarter impact from the COVID-19 outbreak and no media content sales expected in 2Q20.

KGI reiterates a rating of Outperform with a target price of Bt12.00 (PER 30.9x, average of the commerce sector) backed by i) short-term catalyst from strong profit growth in 1Q20 and ii) bright outlook for longer term growth with CAGR of 11% for 2020 – 2021.