Stocks in Focus on April 29, 2020: CPN and ICHI

Kaohoon Online has selected stocks with a potential of high growth for investors to consider on April 29, 2020.

 

Maybank Kim Eng has given a “BUY” recommendation on Central Pattana Public Company Limited (CPN) with a target price at ฿66.00/share.

Maybank expects CPN’s 1Q20 profit to fall 26% YoY due to the closure of shopping centers. The earnings may hit bottom in 2Q20 under the assumption that the shopping mall reopened in June. The profit will gradually recover in 3Q20 before a significant growth next year. Although the shopping centers are closed, we expect this year EBITDA margin of not less than 50%. The net debt-to-equity ratio is 0.46x. Rate BUY with a TP (DCF) of THB66.

 

Finansia Syrus Securities (FSS) has given a “BUY” recommendation on Ichitan Group Public Company Limited (ICHI) with a target price at ฿6.80/share.

FSS states that ICHI’s 1Q20 profit is expected to grow 57% QoQ and 16% YoY to 132 million baht mainly due to higher revenue in domestic sales, but international sales would slow down. ICHI’s expenses on advertisement and promotions are also expected to decline, while the revenue sharing from Indonesia would see a profit as well. The slowdown in sales is due to the coronavirus outbreak, but the new competitors in the market are still low, offsetting its low sales revenue.

In addition, FSS expects ICHI’s 2020 profit to grow 9% to 445 million baht, and has upgraded ICHI’s target price from ฿5.60/share to ฿6.80/share, raising recommendation from “Hold” to “BUY”.