Stocks in Focus on March 26, 2020: VGI and ORI

Stocks in Focus on March 26, 2020: VGI (Maybank Kim Eng TP at ฿8.10/share) and ORI (Asia Wealth Securities TP at ฿9.00/share).

Kaohoon Online has selected stocks with a potential of high growth for investors to consider on March 26, 2020.

 

Maybank Kim Eng has given a “BUY” recommendation on VGI Public Company Limited (VGI) with a target price at ฿8.10/share.

Maybank states that due to the Emergency Decree that will gradually issue details controlling activities for living outdoor and declining consumer confidence, Maybank therefore slashed ORI’s earnings forecasts for 2020/21 by 50% to THB1b (-29% YoY) but expect a strong recovery of +61% YoY next year. Although the new valuation is attractive at THB8.10/share, Maybank advises to wait for a sign of COVID-19 outbreak under control to make a BUY entry.

 

Asia Wealth Securities has given a “BUY” recommendation on Origin Property Public Company Limited (ORI) with a target price at ฿9.00/share.

AWS states that the firm revealed presales in the amount of 1Q20 at Bt4.5bn, equivalent to 21% of the full-year target of Bt21.5bn. Also, the firm is preparing to help customers during April 2020 as well as announced a dividend payment for 2H19 at Bt0.29 per share (Div.Yld.8.8%, XD 14 May)

In this regard, AWS sees that even in the short-term, the firm will be affected from COVID-19, including the economic slowdown, if the situation resolves within 1H20, the company will be able to accelerate the transfer and presales to reach its target, which is supported by a backlog of secured more than 75% of AWS’ transfer target. The share price has decreased more than 55%YTD, AWS looks at buying timing, and expects the dividend for 2020 at Bt0.54 per share (Div.Yld.16.5%).