Stocks in Focus on July 8, 2020: DCC and OSP

Kaohoon Online has selected stocks with high-growth potential for investors to consider on July 8, 2020.

 

Maybank Kim Eng has given a “BUY” rating on Dynasty Ceramic Public Company Limited (DCC) with a target price at ฿2.80/share.

Maybank forecasted 2Q20 earnings to report at THB420m (+14% QoQ, +103% YoY) driven by higher sales and lower energy costs, while DCC is a good stock dividend. Maybank expected DCC to pay dividends of around 70-80% of profits or about THB0.12, implying a good dividend yield of 5.6%.

 

KTB Securities (Thailand) (KTBST) has given a “BUY” recommendation on Osotspa Public Company Limited (OSP) with a target price at ฿50.00/share.

KTBST had a positive view of the reported news of increasing sales of C-Vitt, as such the outstanding sales may drive 2020E C-Vitt sales to significantly exceed our forecast. C-Vitt shares in the domestic functional drink market have increased to 35.5% from 31.3% in 1Q20.

KTBST estimated C-Vitt sales to reach 389mn pieces in 2020E, which significantly exceeds our forecast of 297mn, currently. Coupled with a cut in functional drink tax to 3% from 10% based on 2H20E C-Vitt sales of 230mn pieces, KTBST estimated upside of 5.9% (3% from the higher sales and 2.9% from lower tax) to KTBST’s 2020E net profit forecast of Bt236mn.