Stocks in Focus on September 17, 2019: PTTEP and SPALI

Stocks in Focus on September 17, 2019: PTTEP (Krungsri Securities TP ฿160.00/share) and SPALI (Aira Securities TP ฿24.00/share).

Kaohoon Online has selected two stocks with a potential of high growth for investors to consider on September 17, 2019.

 

KSS – PTTEP
Krungsri Securities states that energy shares will be boosted by a spike in crude prices following drone attacks on two Saudi oil facilities, which is estimated to reduce oil & gas supply by 5.7m bpd or 50% of the Kingdom’s capacity, and 5% of global supply.

Thus, recommends “BUY” PTT Exploration and Production Public Company Limited (PTTEP) at the target price of ฿160.00/share. The company will also receive positive factors from the production and sales of Murphy Oil, pushing its sales revenue by 5% and 14% in 2020.

 

Aira – SPALI

Aira Securities has stated in its analysis, giving a “BUY” recommendation on Supalai Public Company Limited (SPALI) with a target price of ฿24.00/share due to the easing  LTV measurement of the joint-loan agreement in which Aira expects SPALI to be benefited from the measurement.

Moreover, the sales strategy of SPALI aims at “real demand” with a down payment not less than 20% which is higher than other companies in the sector. This results in a high value of backlog that is ready to be book once the project is completed.

In 2019, Aira expects SPALI to book 6,255 million baht of profit, increasing 8% having a backlog as of the end of 2Q19 at 10,189 million baht, equivalent to 76% of its whole year revenue. SPALI still has more than 21 projects to open.

In addition, SPALI has a good strategic plan in making profit while having highest gross profit margin in the industrial sector. The dividend yield is expected to be around 5.5%.