Stocks in Focus on November 13, 2019: BEM and SABINA

Stocks in Focus on November 13, 2019: BEM (Asia Wealth Securities TP ฿12.50/share) and SABINA (Maybank Kim Eng TP ฿36.00/share).

Kaohoon Online has selected stocks with a potential of high growth for investors to consider on November 13, 2019.

Asia Wealth Securities (AWS) has given a “BUY” recommendation on Bangkok Expressway and Metro Public Company Limited (BEM) with a target price at ฿12.50/share.

BEM reported statistics for October 2019 continuously growing. By the Metro business have the number of passengers is 3.75 hundred thousand people per day, an increase of 16.9%YoY and the average daily income is 10 million baht, an increase of 23.3% YoY, while the expressway business volume of 1.24 million tons, an increase of 1.3%YoY. Per day increased by 2.1%YoY to 28.2 million baht.

The company reported a net profit of 3Q62 at 937 million baht, decreased both QoQ and YoY due to no special profit like 3Q18 and 2Q19.

AWS expects strong net profit growth for 2019 – 2021 with 17%CAGRs

 

Maybank Kim Eng (Maybank) has given a “BUY” recommendation on Sabina Public Company Limited (SABINA) with a target price at ฿36.00/share.

Maybank states that SABINA’s net profit rose 11% QoQ and 6%YoY to THB117m, in line with the expectations. The growth was attributed to a significant increase in gross margins from 49.3% in 3Q18 to 54% fuelled by higher proportion of products sourcing from China, which have higher margins than SABINA’s own production.

While total sales decreased slightly by 1% YoY due to slow consumption and flooding in some areas, resulting in store sales declining by 3% YoY to THB651m. However, online and export sales delivered growth of 7% and 102% to THB83m and THB35m, respectively.

 

Maybank forecasts 4Q19 earnings to improve YoY fuelled by higher sales due to more promotions and marketing activities. Also, new product Body Bra The Series released in September has received good response. On the cost part, SABINA still benefits from the increased proportion of products sourcing from China and the Baht appreciated against Chinese Yuan.

 

Thus, Maybank maintains BUY rating with a TP of THB36 (DCF). SABINA is likely to show resilient growth in the long run. The company continues to introduce new innovative products while focusing more on online sales channel. Maybank estimates the 3-year CAGR of 15%, with an upside from exports to CLMV. SABINA has strong financial position with net cash and dividend yield of 4.4%.