Stocks in Focus on July 7, 2020: TOP and SPRC

Kaohoon Online has selected potential stocks with a high growth for investors to consider on July 7, 2020.

 

KGI Securities has given an “Outperform” rating on Thai Oil Public Company Limited (TOP) with a target price at ฿68.00/share.

KGI forecasted TOP to post 2Q20 earnings of Bt4.0bn (+603% YoY, improving QoQ from net loss of Bt13.8bn), benefiting from a significantly better refinery contribution. KGI expected huge net stock gains (including reversion in NRV loss) at Bt3.4bn for the quarter, up YoY and QoQ from the net gains of Bt64mn in 2Q19 and the net loss of Bt14.3bn in 1Q20 after Dubai crude jumped from US$34/bbl in March to US$41/bbl in June. Moreover, TOP’s base GRM is expected to soar QoQ to US$2.1/bbl, from only US$0.1/bbl in 1Q20.

 

Krungsri Securities (KSS) has given a “BUY” recommendation on Star Petroleum Refining Public Company Limited (SPRC) with a target price at ฿8.00/share.

KSS expected SPRC’s 2Q20 earnings to bounce back to 3.5 billion baht after a net loss of 8.3 billion baht in 1Q20. The rebound would be due to 1) the increase in GRM from $1.3/bbl in 1Q20 to $4/bbl due to a production cut of jet fuel and pumping benzene and diesel, 2) expecting a profit from net stock gains around 4.2 billion baht after the recovery of crude oil from $20/bbl in 1Q20 to $40/bbl in 2Q20.