KGI Securities set the consensus’s target price of BCPG Public Company Limited (BCPG) share at THB19.40 and the highest of consensus’s target price at THB23.50. KGI set a support line for BCPG at THB19.20 and resistance at THB19.90-THB20.40 (Stop loss at THB18.60).
BCPG was a low valuation stock in the sector which PE in 2019 equals to 22x and will decrease to 18x in 2020 (PE average 31x and 21x, respectively) due to a 2020 profit will increase 22.1% YoY and higher than the group average 15% YoY. Moreover, the risk of PDP won’t affect BCPG profit estimation because BCPG does not operate any power plant project in Thailand.
KGI Securities recommended “BUY” WHA Utilities and Power Public Company Limited (WHAUP) share at the target price of THB9.00/share. KGI set a support line for WHAUP at THB5.9 and resistance at THB6.2 and THB6.4 (Trailing stop and profit locking at THB5.85).
WHAUP benefited from government forming which will move forward to support EEC project. Although the estimated valuation of the industrial sector is nearly full, WHAUP still has more than 40%upside. Additionally, KGI estimates the PDP adjustment won’t affect the business of WHAUP.