Stocks in Focus on February 18, 2020: TU and STA

Stocks in Focus on February 18, 2020: TU (Maybank Kim Eng TP at ฿18.90/share) and STA (Kasikorn Securities TP at ฿16.30/share).

Kaohoon Online has selected stocks with a potential of high growth for investors to consider on February 18, 2020.

 

Maybank Kim Eng (Maybank) has given a “BUY” recommendation on Thai Union Group Public Company Limited (TU) with a target price at ฿18.90/share.

Maybank states that TU’s 4Q19 earnings came out as expected but gross margin improved thanks to decreased costs and better product mix. Meanwhile, TU’s 1Q20 earnings are likely to recover markedly YoY as the baht has depreciated QTD while it has low-priced tuna stock in 4Q19, with average prices at USD950/tonne. In January, tuna prices surged by 29% MoM and 5% YoY to USD1,350/tonne, which should make customers (OEM) return to order more.

 

Kasikorn Securities (KS) has given a “BUY” recommendation on Sri Trang Agro-Industry Public Company Limited (STA) with a target price at ฿16.30/share.

KS expects STA’s subsidiary, STGT (STA holds 81%), to have an outstanding growth with an increase in profit over 185% from a significant growth in rubber gloves sales due to lower cost and baht depreciation as well as higher demand after the virus outbreak. Currently, STA is traded at 9x of PER while having a dividend yield 4.2%.