Kaohoon Online has selected stocks with a potential of high growth for investors to consider on January 17, 2020.
KGI Securities (KGI) has given an “Outperform” rating on Thai Oil Public Company Limited (TOP) with a target price at ฿82.00/share.
KGI estimates TOP to report 4Q19 earnings of Bt1.7bn, improving YoY and QoQ from net losses of Bt4.8bn in 4Q18 and Bt683mn in 3Q19. The jump YoY and QoQ would be thanks to higher stock gains of Bt1.1bn in 4Q19, up from huge stock losses of Bt7.2bn in 4Q18 and Bt1.4bn in 3Q19. Crude run is also expected to improve 12% QoQ to 300KBD for the quarter as the company had a major maintenance shutdown of refinery June 15, 2019 – July 15, 2019 (30 days).
KGI reiterates TOP’s rating of Outperform on the counter with an unchanged target price of Bt82.00, based on 6.5x EV/EBITDA. TOP remains one of our energy top picks thanks to benefits from IMO’s new policy and its high earnings growth of 122% in 2020.
KGI Securities (KGI) has given an “Outperform” rating on Delta Electronics (Thailand) Public Company Limited (TOP) with a target price at ฿57.00/share.
DELTA is expected to report a 4Q19 net profit of Bt553mn (-45% YoY, -11% QoQ), which would put its 2019 earnings at Bt3.1bn (-39% YoY). The positive outlook for technological adoption and industry upcycle remains valid. However, missed 2019 earnings and possibly weak earnings in 1Q20 would provide negative sentiment to the share price.
KGI believes the negative sentiment would only temporarily as fabulous earnings growth on a full upcycle is possible. Thus, KGI maintains a rating of Outperform with an unchanged end-2020 target price of Bt57.00 based on PER 17.0X (+0.75 S.D. sector average).