Kaohoon Online has selected stocks with a potential of high growth for investors to consider on November 19, 2019.
KGI has given an “Outperform” rating on Minor International Public Company Limited (MINT) with a target price of ฿49.00/share.
KGI has positive views on MINT’s acquisition of Bonchon Chicken, which is expected to provide an upside to KGI’s 2020F earnings projection of 2-3%. KGI assumes 90% of the source of funds will come from MINT’s long-term debt, bringing its 2020F interest-bearing debt-to-equity ratio to 1.31x from 1.24x previously, still far below its debt covenant of 1.75x. Thus, KGI maintains an Outperform rating with a target price of Bt49.00.
KGI has given an “Outperform” rating on WHA Utilities and Power Public Company Limited (WHAUP) with a target price of ฿9.20/share.
WHAUP’s acquisition of a 34% stake in SDWTP has been completed. The equity income contribution would come in 4Q19 (two months) and the current capacity (1A and 1B) would ramp up to an 80% utilization rate in 2020. WHAUP expects to double capacity to 218mn m3/p.a. by 2022-2023. KGI fine-tuned its 2019-2020 earnings forecasts by 2.7-1.5% as KGI revised up its gas cost assumption.
KGI maintains a rating of Outperform and rolls the target price over to 2020 at Bt9.20 based on DCF. WHAUP is its top pick with i) moderate average core earnings growth of 5.0% in 2020-2021 and ii) attractive dividend yield of 4.1% and 4.4% in 2019-2020 which is the highest in the power sector.