BGRIM Soars 5%, Brokers Project High Growth in 2019 and Recommend “Buy” at TP of ฿39
BGRIM hikes 5% while brokers recommend "Buy", giving a target price as high as ฿39.00/share and supporting by its solid growth in 2019.
At 12:00, the share of B.Grimm Power Public Company Limited (BGRIM) is at ฿27.75/share, up ฿1.25 or 4.72%. The highest of the day is ฿28.00/share, while the lowest of the day is ฿26.50/share with ฿322 million in value.
KTB Securities (Thailand) recommends “Buy” at a target price of ฿39/share with an estimation of BGRIM’s profit in 4Q18 at ฿388 million, decreased by 8% quarter on quarter (QoQ), but increased 7% from the same period of last year from an increasing of its production capacity by 252MW (26% up from the previous year), compensating the lower GPM approximately 320bps from a fix Ft ratio while the cost for gas keeps getting higher.
Furthermore, KTB Securities also projects BGRIM to book ฿3.2 billion of profit in 2019 with an outstanding growth by 70% from 2018, giving the increase in capacity to increase by 466MW (40% up from 2018) while fully recognizing the income from its newly COD projects in 2018.
Aira Securities also asserts that BGRIM has good potential to expand the business to other countries with its solid network. There are still many countries such as Malaysia, Cambodia, Vietnam, Philippines, Taiwan and Korea. BGRIM’s 2019 profit would increase by 48% to ฿3,155 million from an estimation by Aira Securities, thus, give a target price at ฿33.50/share with an estimation of 1.7% dividend yield.
