Stocks in Focus on March 13, 2020: BAM and TOA

Kaohoon Online has selected stocks with a potential of high growth for investors to consider on March 13, 2020.

 

Maybank Kim Eng has given a recommendation on Bangkok Commercial Asset Management Public Company Limited (BAM) with a target price at ฿28.00/share.

Maybank states that BAM remains a top pick stock for long-term investment thanks to collateral that is  200% greater than asset while deferred tax asset remains at THB 5.88 billion. Maybank expects BAM should gradually record from 2020. Moreover, it pays a dividend of THB 1.00/share as expected, implying a yield of 5%.

 

KTB Securities (Thailand) has given a “BUY” recommendation on TOA Paint (Thailand) Public Company Limited (TOA) with a target price at ฿40.00/share.

KTBST forecasts 2020-21E net profit to grow +12%/+9% YoY to Bt2.42bn/Bt2.63bn as 1) sales volume is expected to increase +10% to 4mn gallons per year on the back of new capacity from Indonesia, Myanmar and Cambodia, and 2) gross profit margin will likely remain strong at 34-35% in light of a low cost of Titanium dioxide (TiO2). Adding to positive factors, Indonesia is the largest market in Southeast Asia with consumption growth of +9% per year, while TOA has enough cushion against the deteriorated economy given its net cash position and a low interest-bearing debt of 0.05x.

TOA’s share price outperformed the SET Index by 21% in a one-month period. KTBST sees the price advancing further given TOA’s healthy financial position and net cash position, which KTBST believes should lend support to the price amid the market’s volatility.