Stocks in Focus on December 1, 2020: VGI and SPRC

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on December 1, 2020.

 

KTB Securities (Thailand) (KTBST) has given a “BUY” recommendation on VGI Public Company Limited (VGI) with a target price at ฿9.00/share.

KTBST forecasted VGI’s 2HFY21E (October 2020-March 2021), net profit of Bt310mn, recovering from a net loss of Bt104mn in 1QFY21, and improving from a net profit of Bt12mn in 2QFY21.

Key earnings growth driver would contribute to 1) higher revenue, which KTBST estimated to grow significantly +30% HoH on the back of the government’s spending stimulus measure and then higher ad expenditures, 2) a wider gross profit margin given higher ad capacity utilization, and 3) higher profit contribution from Kerry Express (KEX).

KTBST maintained FY21E net profit forecast at Bt218mn, which indicates a drop of -85%. In FY22E (April 2021-March 2022) and forecasted net profit to skyrocket +323% to Bt920mn, returning to its normal level before the COVID-19 outbreak.

 

Krungsri Securities (KSS) has given a “BUY” recommendation on Star Petroleum Refining Public Company Limited (SPRC) with a target price at ฿10.00/share.

KSS stated that positive vaccine news and reopening optimism in several countries will boost demand for crude and refined oil, which would lift GRM. Moreover, SPRC is expected to book larger stock gain in 4Q20. Meanwhile, the stock remains a sector laggard at -31% YTD.