Kaohoon Online has selected stocks with a potential of high growth for investors to consider on October 31, 2019.
Kasikorn Securities (KS) has given an “Outperform” rating on R&B Food Supply Public Company Limited (RBF) with a target price of ฿4.52/share.
KS expects the earnings of RBF to soar 60% QoQ to Bt96mn on increased sales. Expenses will likely drop on the absence of a provision for employee benefits and a hotel impairment booked in 2Q19. KS projects earnings to grow at 13% CAGR during 2019-2021 on the back of an overseas market expansion. Our TP implies 21x PER 2020, on par with the industry average but lower than the industry leaders at 25-30x.
Krungsri Securities (KSS) has reiterated a “BUY” call for all operators in ICT sector with its top picks: ADVANC TP at ฿260.0/share, INTUCH TP at ฿82.00/share and DTAC TP at ฿70.00/share.
KSS maintains that the upcoming 5G auction – if it takes place next year – will not burden operators. After attending the 5G seminar yesterday, KSS feels the government and NBTC are desperately pushing the implementation of 5G to make Thailand competitive, to attract more FDI.
However, the operators do not yet have a clear business model for 5G, and prefer to wait two more years before investing in 5G. So, if the government and NBTC want the auction to be successful, they need to reduce the cost of the licenses or offer favorable terms to the operators.
Top picks: ADVANC, INTUCH and DTAC
KSS reiterated a BUY call for all four operators, but our top picks are ADVANC (TP Bt260), INTUCH (TP Bt82) and DTAC (TP Bt70). KSS also has a BUY call for TRUE (TP Bt6.8). Note that the earnings and TPs for all operators do not include payments and capex for 5G licenses.