Stocks in Focus on June 11, 2020: BEM and SPVI

Kaohoon Online has selected stocks with a potential of high growth for investors to consider on June 11, 2020.

 

Maybank Kim Eng has given a “BUY” recommendation on Bangkok Express and Metro Public Company Limited (BEM) with a target price at ฿13.00/share.

Maybank stated that although BEM’s 2Q20 earnings would be fully affected by COVID-19 from the Emergency Decree and Work from Home, the recovery of expressway users and subway passengers is fast as our estimates. Therefore, Maybank expected a strong rebound in profits in 3Q20.

The management also signalled two positive signs to shareholders, namely the higher dividend payout and protecting investors by using low-interest debt to expand the business instead of increasing capital or high cost like Infra funds. This should be positive to its EPS growth and ROE in the long run.

 

Land and Houses Securities (LHS) has given a “BUY” recommendation on S P V I Public Company Limited (SPVI) with a target price at ฿3.10/share.

LHS stated that SPVI is a distributor of Apple’s products including smart phones, accessories and gadgets. The sales revenue in 2Q20 would be affected by the closure of stores due to the coronavirus outbreak, but the profit YoY would not decrease significantly. Meanwhile, the company is advancing in opening more U.Store with three more in 3Q20 and four to come in 4Q20, which would support SPVI’s profit this year. Moreover, SPVI offers a dividend yield at 4%.