Stocks in Focus on February 25, 2020: LH and HANA

Stocks in Focus on February 25, 2020: LH (Krungsri Securities TP at 11.50/share) and HANA (KGI Securities TP at ฿39.00/share).

Kaohoon Online has selected stocks with a potential of high growth for investors to consider on February 25, 2020.

 

Krungsri Securities (KSS) has given a “BUY” recommendation on Land and Houses Public Company Limited (LH) with a target price at ฿11.50/share.

KSS states that concerns over low tourist arrivals, which could affect the revenue of Terminal 21 (Sukhumvit and Pattaya), have caused LH’s share prices to decline, reflecting an oversold. However, LH has consistency dividend payment as well as high yield, thus, the lower share price is the opportunity to accumulate for receiving a dividend from the operation in 2H19. KSS expects the dividend would not be less than ฿0.40/share, reflecting a dividend yield of 4.6%.

 

KGI Securities (KSGI has given an “Outperform” rating on Hana Microelectronics Public Company Limited (HANA) with a target price at ฿39.00/share.

HANA reported 4Q19 core earnings of Bt457mn (-30% YoY, +17% QoQ), beating KGI’s forecast by 27% and the market consensus by 13%. Looking ahead, the COVID-19 outbreak may lead to disruptions in the supply chain and delay the industry upcycle, especially in 1H20. This brought us to tone down the top line in 2020. However, the depreciation of the baht would be a tailwind to support profitability.

As such, KGI revised down 2020 earnings by 1% but revised up 2021 earnings 9%. As disruptions in the supply chain may weigh on the near-term outlook while the long-term outlook for the industry up cycle remains, KGI rolled its target price over to mid-2021 at Bt39.00 with unchanged PER of 18.0x (+1.0 S.D. sector average).

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