Stocks in Focus on January 23, 2020: CHAYO and WHA

Stocks in Focus on January 23, 2020: CHAYO (Kasikorn Securities TP at ฿7.10/share) and WHA (KGI Securities TP at ฿5.60/share).

Kaohoon Online has selected stocks with a potential of high growth for investors to consider on January 23, 2020.

 

Kasikorn Securities (KS) has given a “BUY” recommendation on Chayo Group Public Company Limited (CHAYO) with a target price at ฿7.10/share and a net profit of 2018-2021 CAGR to be 25.8%.

KS states that CHAYO, as a small stock, has higher profit growth and gross profit margin than other stocks in the sector which offsets its low liquidity when compared to JMT and BAM.

The potential upside for CHAYO could be from 1) An extension for amortization from 5 years to 8 years. 2) Decrease of funding cost. 3) Profit from asset selling.

 

KGI Securities (KGI) has given a “BUY” recommendation on WHA Corporation Public Company Limited (WHA) with a target price at ฿5.60/share.

KGI expects WHA to post a net profit in 4Q19 at 1.2 billion baht, decreased 20% YoY and increased 106% QoQ, which will contribute to a full-year net profit of 3.2 billion baht, increased 10% YoY and inline with KGI forecast.

It is expected that the land sale in 4Q19 would be around 500 rai due to higher demand from Chinese customers, and would be a positive factor coming in 2020. The share price plunged 20% in the past month which was believed to be due to political issues.