Stocks in Focus on December 3, 2020: JWD and MAJOR

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on December 3, 2020.

 

KTB Securities (Thailand) (KTBST) has given a “BUY” recommendation on JWD Infologistics Public Company Limited (JWD) with a target price at ฿11.70/share.

KTBST stated that it was increasingly positive about JWDs earnings outlook after visiting JWDs warehouses at Laem Chabang seaport. First, JWDs general warehouse has experienced a higher occupancy rate of 96% from 90% in 3Q20 on the back of stronger demand from overseas customers due to the COVID-19 outbreak. Second, the auto warehouse and yard management business is likely to fare well on the back of the country’s higher auto output and prospective customers. Third, the dangerous goods warehouse business may return to its normal level before the COVID-19 outbreak. Last, revenue from the barge terminal business would grow by between 20% and 50% in 2021E given higher container volume.

KTBST upgraded its 2020-21E net profit forecast by 5-9% to Bt301mn (-17% YoY) and Bt383mn (+27%) in light of stronger performance across all businesses. In 4Q20E, KTBST forecasted JWD’s net profit to grow further QoQ.

 

Maybank Kim Eng has given a “BUY” recommendation on Major Cineplex Public Company Limited (MAJOR) with a target price at ฿22.00/share.

Maybank expected MAJOR’s 4Q20 earnings to recover on better cost control and better than expected revenue from Thai films which saw relatively good feedback. 2021 outlook should continue with positive growth momentum thanks to multiple Hollywood films set to be released and better cost control.