Stocks in Focus on July 31, 2020: TASCO and CK
Stocks in Focus on July 31, 2020: TASCO (Krungsri Securities TP at ฿32.00/share) and CK (Maybank Kim Eng TP at ฿24.00/share).
Kaohoon Online has selected stocks with a high-growth potential for investors to consider on July 31, 2020.
Krungsri Securities (KSS) has given a “BUY” recommendation on Tipco Asphalt Public Company Limited (TASCO) with a target price at ฿32.00/share.
KSS expected TASCO’s earnings to bounce back in 2Q20 to Bt1.4-1.5b profit from a Bt784m loss in 1Q20, driven by the reversal of NRV on the back of higher asphalt prices (double 1Q20 prices). 3Q20 growth will be boosted by rising orders from China to repair roads after the floods (40% of exports to China).
Maybank Kim Eng has given a “T-BUY” recommendation on CH. Karnchang Public Company Limited (CK) with a target prince at ฿24.00/share.
Maybank expected CK’s 2Q20 earnings to recover with a slight profit of THB20m after a loss of THB122m in 1Q20. 2H20 earnings should outperform 1H20 due to share of profits from investment in BEM and CKP tends to significantly increase after a hiccup in 1H20. Even though the backlog is low, it is expected to reach a new S-Curve of more than THB200b by 2021. The value of its subsidiaries BEM, CKP and TTW is as high as THB64b, equivalent to THB38/share.