Stocks in Focus on January 22, 2020: CBG and KTB

Stocks in Focus on January 22, 2020: CBG (KTB Securities TP at ฿123.00/share) and KTB (KGI Securities TP at ฿21.20/share).

Kaohoon Online has selected stocks with a potential of high growth for investors to consider on January 22, 2020.

 

KTB Securities (Thailand) (KTBST) has given a “BUY” recommendation on Carabao Group Public Company Limited (CBG) with a target price at ฿123.00/share.

KTBST reiterates a BUY rating on CBG and a target price of Bt123.00, which implies 2020E PER of 38x, as a reduction in raw material cost and higher capacity utilization are expected to boost CBG’s 4Q19E earnings to beat Bloomberg consensus forecast.

KTBST forecasts 4Q19E net profit to grow +51% YoY, +9% QoQ to Bt799mn while 2019E net profit forecasts at Bt2.5bn, which represents a strong growth of +116% and expects net profit to grow a further of +29% YoY in 2020.

CBG’s share price has outperformed the SET Index by 19% in six months. The stock’s valuation remains attractive, trading at 2020E PER of 27.0x compared to its peer of 30.8x, and the share price has yet priced in CBG’s further earnings growth in 2020 (+29% YoY). CBG is our top pick in the food & beverage sector. Key short-term catalyst to the share price is CBG’s strong 4Q19E earnings outlook, which is likely to beat Bloomberg consensus forecast.

 

KGI Securities (KGI) has given Krung Thai Bank Public Company Limited (KTB) an “Outperform” rating with a target price at ฿21.20/share.

KGI states that KTB reported 4Q19 earnings of Bt7.4bn (+17% QoQ, +21% YoY). The result was 17% above KGI’s forecast due to higher than expected gain on investment, but 8% below the market consensus. Full-year 2019 earnings were Bt29.3bn (+3% YoY).

KTB’s overall operation is still on track and BoT’s new policy favors the bank to be easing NPL reclassification. As a government processing bank, KGI thinks KTB will benefit from the government’s investment policy going forward.