Stocks in Focus on November 12, 2019: BTS and DRT

Stocks in Focus on November 12, 2019: BTS (Kasikorn Securities TP ฿14.40/share) and DRT (Maybank Kim Eng TP ฿7.30/share).

Kaohoon Online has selected stocks with a potential of high growth for investors to consider on November 12, 2019.

 

Kasikorn Securities (KS) has raised BTS Group Holdings Public Company Limited (BTS)’s share prices to ฿14.40/share after BTS accepted a debt of ~Bt100bn in exchange for an extension of the Extension Green line concession for another 30 years. KS estimates this will drive its target price up to Bt14.40 and believes BTS would not have to rely on increasing debt further to fund future projects as it could obtain funds by selling assets to BTSGIF.

 

Maybank Kim Eng has given a “BUY” recommendation on Diamond Building Products Public Company Limited (DRT) with a target price at ฿7.30/share after the company posted 3Q19 earnings with a strong profit growth of 63% YoY to THB130m, above our forecast of THB120m, slightly down -1% QoQ due to seasonal effects. Sales of THB1.113b (-11% QoQ, +10% YoY) driven by the growth of project and modern trade customers. Autoclaved aerated concrete business has recovered, with a net profit margin of 3-4% from a loss.

Maybank has stated that DRT has high cash flow, resulting in high dividend payment. It pays 1H19 DPS of THB0.20 and expecting THB0.40 for FY2019, representing a dividend yield of 6.6%. Thus, Maybank recommends “BUY” for dividends. The TP for FY2020 is set at THB7.30 on 12.8x P/E (10-yr average Forward PE).