Stocks in Focus on June 22, 2020: STEC and FPT
Stocks in Focus on June 22, 2020: STEC (KGI Securities TP at ฿19.20/share) and FPT (Kasikorn Securities TP at ฿16.50/share).
Kaohoon Online has selected stocks with a potential of high growth for investors to consider on June 22, 2020.
KGI Securities has given an “Outperform” rating on Sino-Thai Engineering & Construction Public Company Limited (STEC) with a target price at ฿19.20/share.
KGI stated that in reference to the contract for U Tapao Airport City, signed last Friday, STEC will receive the first phase backlog of Bt20bn. KGI expected construction to begin in 2H21. Looking ahead, TOR for MRT Orange Line West is expected to launch in July 2020. KGI expected two consortiums to participate in the bidding i) BTS-led consortium and ii) BEM-led consortium. From the comparative analysis, KGI saw BGSR consortium having a higher chance of winning (60:40).
Meanwhile, STEC would see no significant impact from the delayed rolling stock of MRT Pink and Yellow lines as BTS handles track work and commissioning. However, there would be a slight negative as a shareholder in the project (15% share).
Kasikorn Securities (KS) has give a “BUY” recommendation on Fraser Property (Thailand) Public Company Limited (FPT) with a target price at ฿16.50/share.
KS stated that FPT planned for a conclusion of two dispositions within February 2021 with a total asset value of 5.78-5.88 billion baht, which would return FPT a profit of 1.4 billion baht. KS recommended FPT due to its strong fundamentals along with veteran shareholders and directors, which would support FPT in its solid growth in Thailand and the region.