KGI Securities recommended “BUY” DOD Biotech Public Company Limited (DOD) share with the highest target price of the consensus at THB16.30/ share and set the support line at THB13.60 while the resistance line at THB14.80 (Trailing stop at THB12.4). KGI estimated the 2H19 performance of DOD to recover from starting the production of the new product since 2Q2019 and preparing to produce their own supplementary products.
Moreover, DOD has purchased the business of PCCA Laboratory Co.,Ltd (PCCA), a manufacturer of cosmetic and care products, since the end of last year which will see the result of business restructuring in the 2H2019. KGI said the valuation of DOD is not expensive and PE in 2019 is quite low at 14.6x (an average PE of the sector is 19.3x). Additionally, the consensus estimated 6.2% of dividend yield and profit growth to be approximately 16.7%.
Finansia Syrus Securities stated that a 2/2019 profit of Berli Jucker Public Company Limited (BJC) is growing positively from the last year including WG business which has bought since last year and paying an effective tax rate as normal. Primarily, Finansia expected a normal profit of BJC to be THB1.64 billion, increasing 10% QoQ, 25%YoY but the net profit is expected to fall 11% QoQ, 4% YoY because BJC had to provide the payment approximately THB300 million for employee benefits. Therefore, Finansia recommended “BUY” BJC share with the target price of THB58.00/share.Furthermore, the policy of the new government that promised to keep the eyes on agriculture products and stimulate a purchasing power has affected positively to Big C, a business under BJC, due to business expansion. The policy is also good for the consumer business of BJC. While BJC has new customers for packaging business to substitute the previous income. Meanwhile, BJC share is in a laggard group, decreased 2% YTD, compared to a gain of 15% YTD in the sector, making its PE lower than the sector.