Stocks in Focus on 6 August 2019: ADVANC and BGRIM

On August 6, 2019, Kaohoon Online has selected two stocks with a potential of high growth for investors to consider.

KTB Securities (KTBST) stated that although the net profit in 2Q2019 of ADVANCED Info Service Public Company Limited (ADVANC) was THB 7,725 million, decreased 3.5% QoQ, increased 1.5% YoY, it is better than the market had expected. KTBST said ADVANC still expects a whole year revenue of 2019 to increase by 4.6% and sets the EBITDA margin to be in line with the previous year of an approximately 42-44%.
Moreover, ADVANC also allocates a budget of THB 20-25 million for investing in 4G and fiber project and preparing for 5G, expecting to commence in October 2020.  KTBST said that ADVANC has a good cash flow. In the 2Q2019, EBITDA has increased 4% QoQ and 4.5 YoY, asserting that the share price of ADVANC is not expensive. The current share price is traded at PE 21x, ROE 45%, with a dividend yield of 3.2%. Therefore, KTBST recommended “BUY” ADVANC share with the target price of ฿220.0/share.

 

AIRA Securities expected the performance of B.Grimm Power Public Company Limited (BGRIM) to grow continuously in 6-7 years from operating the solar power plants in Thailand, Laos, and Vietnam. As the result of operating solar power plants in the three countries, BGRIM’s capacity to produce electricity will increase to 3,245 MW in 2025 from 2,076 MW in 2018.
On 17 June 2019, BGRIM informed the SET to operate a commercial operation of two solar power plant projects in Vietnam which are DT1 (BGRIM holds 55% share) and DT2 (BGRIM holds 55% share) project with the total capacity of 420MN, COD on 3 June and 13 June 2019, respectively and Phu Yen TPP project (BGRIM holds 80% share) which had COD on 10 June 2019. Furthermore, BGRIM is negotiating to operate power plants in many countries, such as Korea, Taiwan, Philippines, and Malaysia based on the strength of BGRIM network in other countries.
AIRA said that BGRIM’s share price is traded at PE 28x, based on 2020 PE and expected to pay 1.2% dividend yield. Therefore, AIRA recommended “buy for investment” BGRIM share with the target price of ฿39.00/share based on DCF method.