Stocks in Focus on March 25, 2020: BEM and MCS

Stocks in Focus on March 25, 2020: BEM (Asia Wealth Securities TP at ฿12.50/share) and MCS (Maybank Kim Eng TP at ฿11.50/share)

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

 

Asia Wealth Securities has given a “BUY” recommendation on Bangkok Expressway and Metro Public Company Limited (BEM) with a target price of ฿12.50/share.

AWS states that BEM is an attractive stock for long-term investment. The firm will continue to plan for opening the Blue Line Extension Phase 3 (TaoPoon – Tha Phra), although in the short-term, there is a risk from the reduced number of passengers due to the effect of COVID-19, which will be difficult to forecast the impact, but AWS believes that if the situation ends within May, it will affect the number of passengers and net profit in 2020 are approximately 15% and 12%, respectively, affecting the target price not over Bt1.50. The share price has decreased by more than 36% in the past month so AWS looks at the timing to invest in the long-term due to the share price has decreased more than the fundamental effect.

 

Maybank Kim Eng has given a “BUY” recommendation on M.C.S. Steel Public Company Limited (MCS) with a target price at ฿11.50/share.

Maybank states that the Covid-19 outbreak in Japan and Thailand does not affect the plan for the delivery of structural steel to Japan. This year it will deliver up to 50,000 tonnes vs 37,434 tonnes last year. Maybank revised up the forecast expecting profit this year to increase to THB673m, growing 11%. Given a backlog of 120k tonnes, profit should continue growing strong next year. In the future, it is likely to gain a project with 70,000 tonnes of large structural steel shipped to Japan, which is a complex job, so the price is as high as JPY300,000/tonne. The share price sharply plunged, contrary to the earnings growth potential. Given low P / E and good dividend.