Stocks in Focus on January 21, 2020: EKH and STEC

Stocks in Focus on January 21, 2020: EKH (KGI Securities TP at ฿8.90/share) and STEC (Kasikorn Securities TP at ฿21.50/share).

Kaohoon Online has selected stocks with a potential of high growth for investors to consider on January 21, 2020.

 

KGI Securities (KGI) has given an “Outperform” rating for Ekachai Medical Care Public Company Limited (EKH) with a target price at ฿8.90/share.

KGI expects EKH to report 4Q19 earnings of Bt32mn (+16.2% YoY, -33.7% QoQ). The YoY growth would be driven by higher revenues from the pediatric center and IVF, while the QoQ drop would be from seasonal factors. Looking ahead, EKH’s growth outlook will be driven by Hemodialysis, ENT centers and EKH Nursing Home on Rama II Road (targeted to operate by 1Q21).

In this regard, KGI maintains its earnings estimates at Bt161mn (+37.4% YoY) in 2019F and Bt184mn (+14.3% YoY) in 2020F, and maintain a rating of Outperform with a 2020 target price at Bt8.90.

 

Kasikorn Securities (KS) has given a recommendation of Sino-Thai Engineering and Construction Public Company Limited (STEC) with a target price at ฿21.50/share.

KS states that the parliamentary approval of FY2020 budget bill has created positive sentiment for contractors. The government is expected to start signing contracts for Bt700bn of works in 2Q20 and start bidding for new contracts worth Bt600bn in 3Q20 while STEC’s valuation is undemanding at P/BV -2 S.D.

 

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