Stocks in Focus on March 30, 2020: BEM and INTUCH

Stocks in Focus on March 30, 2020: BEM (KGI Securities TP at ฿10.00/share) and INTUCH (Krungsri Securities TP at ฿79.00/share).

Kaohoon Online has selected stocks with a potential of high growth for investors to consider on March 30, 2020.

 

KGI Securities has given an “Outperform” rating on Bangkok Expressway and Metro Public Company Limited (BEM) with a target price at ฿10.00/share.

KGI states that as the COVID-19 outbreak worsens and Bangkok is shutting down, KGI expects passengers on MRT Blue Line and toll traffic volume to decline further from March onwards as many companies announced policies to work from home, leave without pay and layoffs during the period.

KGI cuts BEM 2020 – 2021 earnings forecasts by 39.0% and 24.4% to reflect weaker outlooks in i) expressway, ii) rail, and iii) commercial property development businesses.

Nevertheless, KGI has upgraded BEM to Outperform, from Neutral, with a 2020 target price of Bt10.00 based on SOTP due to i) attractive upside to our target, and ii) potential upside from MRT Orange Line West (expected to launch TOR in 1H20). If COVID-19 ends by 2020, KGI expects BEM to post 2020 -2023 earnings growth of 19.6% CAGR.

 

Krungsri Securities has given a “BUY” recommendation on Intouch Holdings Public Company Limited (INTUCH) with a target price at ฿79.00/share.

KSS states that INTUCH’s share price does not reflect full value of stakes in ADVANC and THCOM. Meanwhile, the stock is trading at 35% discount to NAV (vs 25% discount previously). Moreover, INTUCH also pays a higher dividend than ADVANC as KSS projects Bt3.00/share or 6.1% dividend yield this year vs 3.8% for ADVANC.