Stocks in Focus on June 26, 2020: GGC and ITEL

Kaohoon Online has selected stocks with a potential of high growth for investors to consider on June 26, 2020.

 

KGI Securities has given an “Outperform” rating on Global Green Chemicals Public Company Limited (GGC) with a target price at ฿11.50/share.

KGI stated that GGC has P/E at 16.0x, slightly lower than the average 2019-21 forward P/E of its only peer, PTG, at 17.2x. This implied PEG ratio of only 0.6x for 2021.

KGI expected GGC to posted an outstanding 2020 earnings growth of 592% YoY, while having a positive view on the domestic biodiesel market, as i) B10 is the mandatory diesel in Thailand since January 2020 and ii) higher B10 subsidization from Bt2.0/liter to Bt3.0/liter from March 2020 onwards.

In addition, the Biocomplex Phase I project, which is planned to begin operations in 4Q21, would boost earnings to the company in 2022. However, KGI estimated lower 2Q20 earnings QoQ mainly from no stock gains like in 1Q20.

 

Finansia Syrus Securities (FSS) has given a “BUY” recommendation on Interlink Telecom Public Company Limited (ITEL) with a target price of ฿3.60/share.

FSS stated that ITEL’s business has returned to normal after the reopening economy, while having 450 million baht worth of backlog in store from its previous bidding projects and will be starting to recognize the earnings this year.

Moreover, FSS revised up ITEL’s profit in 2020 by 7% to 179 million baht, which is on par with its profit last year, considering the situation this year. The ITEL-W2 at ฿3.00/share would increase its liquidity if the shareholders approved the agenda.