Stocks in Focus on March 17, 2020: PTG and TQM

Stocks in Focus on March 17, 2020: PTG (KTB Securities TP at ฿20.00/share) and TQM (Maybank Kim Eng TP at ฿73.00/share)

Kaohoon Online has selected stocks with a potential of high growth for investors to consider on March 17, 2020.

 

KTB Securities (Thailand) (KTBST) has given a “BUY” recommendation on PTG Public Company Limited (PTG) with a target price at ฿20.00/share.

PTG has maintained its 2020 sales volume growth target of 15-20% after its 2M20 sales volume grew +12% YoY but will book a non-cash item of a one-time operating lease of Bt160mn this year in accordance with the TFRS 16 standard. To reflect the TFRS 16 impact, KTBST cuts 2020E net profit forecast by 9% to Bt1.57bn but maintains a core profit estimate at Bt1.73bn. KTBST asserted that its forecast includes the COVID-19 impact, which is expected to damp gasoline demand.

 

Maybank Kim Eng has given a recommendation on TQM Corporation Public Company Limited (TQM) with a target price at ฿73.00/share.

Maybank states that due to the COVID-19 outbreak, TQM should benefit from rising demand for insurance to cover the coronavirus. The overall revenue is forecast to grow at a strong pace of +27% CAGR in the next 6 years. Profitability is expected to improve, fueled by a digital platform, strong balance sheet, no debts and a negative cash cycle. This makes TQM an attractive stock for investment.