Stocks in Focus on February 21, 2020: CBG and KGI

Stocks in Focus on February 21, 2020: CBG (KTB Securities TP at ฿123.00/share) and COM7 (KGI Securities TP at ฿31.50/share).

Kaohoon Online has selected stocks with a potential of high growth for investors to consider on February 21, 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 states that the 4Q19 earnings results were in line with Bloomberg consensus and KTBST’s forecast. The share price has significantly outperformed the SET Index by 25% in a six-month period. The share price, however, remains attractive, trading at 2020E PER of 27.0x, which is well below its peer of 29.8x.

KTBST sees the price rising further given CBG’s brighter 2020E earnings outlook. CBG’s packaging business, which is set to begin commercial operation in 4Q20, should boost its GPM in the long term. CBG thus remains KTBST’s top pick in the beverage sector.

KGI Securities (KGI) has given an“Outperform” rating on Com7 Public Company Limited (COM7) with a target price at ฿31.50/share.

KGI states that COM7 posted a solid 4Q19 net profit of Bt385mn (+45.6% YoY, 34.2% QoQ), largely on the back of solid top-line growth. The result was 20.3% above the forecast and 16.7% above the market consensus. Full-year net profit was a record high Bt1.2bn (+36.5% YoY), which was 5.6% higher our forecast. In 2020, KGI believes that COM7 will benefit from the rising popularity of wearable products and repetitive demand for new smartphones.