Kaohoon Online has selected two stocks with a potential of high growth for investors to consider on October 1, 2019.
KSS – GFPT
Krungsri Securities (KSS) has given a “BUY” recommendation on GFPT Public Company Limited (GFPT) with a target price at ฿21.00/share after ASF has created opportunities for exports.
Broiler export value was stable at Bt18.1b in Jul-Aug 19 (+0.4% yoy) but jumped 7.1% yoy in 8M19 to Bt70.0b, higher than target export growth of 2.3%. KSS sees opportunities to export more broilers to China and South Korea, driven by higher demand for chicken meat as substitute for pork because of ASF.
KSS recommends GFPT because earnings will continue to grow through to 2020 supported by favorable demand dynamics in the poultry industry (substitution effect and 2020 Olympics).
KGI – CK
KGI Securities (KGI) has given an “Outperform” rating on CH. Karnchang Public Company Limited (CK) with a target price at ฿32.75/share, stating that investors should now view CK as a holding company with sustainable concession business as Bangkok Expressway and Metro (BEM) and CK Power (CKP) are entering growth phases.
Meanwhile, CK’s backlog would increase to Bt47.2bn after signing the Rama III-Dao Kanong expressway contract (Bt6.6bn) and KGI expects the high-speed train project linking three airports to be signed by the deadline (October 15, 2019). KGI maintains a rating of Outperform with a mid-2020 target price of Bt32.75 based on SOTP. Despite unattractive earnings growth in 2019, CK’s 2020 earnings should grow 138.7% YoY, mainly due to equity income growth from MRT Blue line extension and full year operation of Xayaburi power.