Stocks in Focus on March 5, 2020: BJCHI and HMPRO

Stocks in Focus on March 5, 2020: BJCHI (Maybank Kim Eng TP at ฿2.50/share) and HMPRO (DBS Vickers Securities TP at ฿16.00/share).

Kaohoon Online has selected stocks with a potential of high growth for investors to consider on March 5, 2020.

 

Maybank Kim Eng has given a “T-BUY” recommendation on BJC Heavy Industries Public Company Limited (BJCHI) with a target price at ฿2.50/share.

Maybank expects BJCHI to see a strong growth outlook in 2020, benefiting from a backlog of THB 3 billion and new jobs worth THB 1.5 billion gain in March, totaling THB 4.5 billion in the backlog. There will be more from THB 17 billion worth from auctions in the future.

Maybank expects revenue recognition this year to be THB 2.75 billion, a surge of 36% and profits of THB 268 million, soaring 468%. BJCHI has high cash in hand and a good dividend yield of 7%. The share price is trading at a price lower than the book value per share of THB2.30. Thus, Maybank recommends TRADING BUY for a dividend payment with a target price at THB2.50.

 

DBS Vickers Securities (DBSVS) has given a “BUY on Weakness” recommendation on Home Product Center Public Company Limited (HMPRO) with a target price at ฿16.00/share.

DBSVS states that HMPRO’s 2019 profit grew 10% YoY, but due to various negative factors this year, it would be a challenging year for BJCHI as SSSG has turned slightly negative from the impact of economic slowdown, drought and coronavirus.

A -14% YTD share price should have priced-in the aforementioned negativity, thus, DBSVS has upgraded the recommendation from “HOLD” to “BUY on Weakness” with an unchanged target price at ฿16.00/share, based on a DCF on an estimated profit in 2020 and 2021 at 6.4% and 11.2%, respectively.