Stocks in Focus on February 17, 2020: ADVANC and BTS

Stocks in Focus on February 17, 2020: ADVANC (Finansia Syrus Securities TP at ฿260.00/share) and BTS (KTB Securities TP at ฿14.60/share).

Kaohoon Online has selected stocks with a potential of high growth for investors to consider on February 17, 2020.

 

Finansia Syrus Securities (FSS) has given a “BUY” recommendation on Advanced Info Service Public Company Limited (ADVANC) with a target price at ฿260.00/share.

FSS states that in yesterday’s bidding, ADVANC acquired all spectrum including 700 MHz (1 license), 2600 MHz (10 licenses) and 26 GHz (12 licenses) with a total value of 42 billion baht.

In this regard, FSS has a very positive view on ADVANC from the lower bidding prices which was lower than the 4G bidding while NBTC allows an installment in which ADVANC could have paid the payment without any loan. ADVANC’s strong point would be the fact that the company has all spectrum to compete in the market in 5G era for the next 10 years.

 

KTB Securities (Thailand) (KTBST) has given a “BUY” recommendation on BTS Group Holdings Public Company Limited (BTS) with a target price at ฿14.60/share.

KTBST states that BTS reported 3QFY20 earnings results with its core profit exceeding the Bloomberg consensus forecast by 24% which led KTBST to raise its FY20E core profit forecast by 13% to Bt4.4bn to reflect strong O&M revenue and share of profit contribution outlook.

BTS’s share price has declined 5% in one month given the negative sentiment in the stock market due to the COVID-19 outbreak and an earlier delay in the government’s fiscal 2020 budget act. KTBST views such decline as an opportunity to increase positions in BTS on the back of 1) attractive valuation, trading at FY21E core PER of 40x, which is well below its 5-yr average level of 63x; 2) a looming renewal of the core Green Line contract, which is expected to put on the table for the Cabinet’s approval early March; 3) an imminent signing of U-Tapao Airport project, and 4) strong 4QFY20E core profit growth YoY outlook.