Stocks in Focus on March 31, 2020: CBG and ORI

Stocks in Focus on March 31, 2020: CBG (Maybank Kim Eng TP at ฿69-฿81.00/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 31, 2020.

 

Maybank Kim Eng has given a “BUY” recommendation on Carabao Group Public Company Limited (CBG) with a target price of 69-81 baht per share.

Maybank expects CBG’s sales to grow at least 10-20% this year due to exports to Myanmar, Cambodia and Vietnam and Chinese sales are expected to grow by 20%. The impact of COVID-19 is quite limited. Gross margin tends to increase due to decreased raw material costs and saving from economy of scale due to more production.

 

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

ORI has made a joint investment with “GS E&C” in the development of  2 condominiums (JVs) which are The Origin Ladprao 111 and Knightsbridge Space Rama 4 with a total value of over Bt4.2bn.

AWS sees this partnership as a positive for the company to have a partner in project development which helps reduce the financial burden and reduce the risk of opening the project. In addition, the company still receives income from project management fees.

AWS has asserted that the firm still chooses ORI as the top picks. Even in the short-term, the property development sector will have negative pressures. But AWS expects that if the  COVID-19 pandemic is resolved within 1H20, the company will be able to reach its target from backlog at secure over 75% of our transfer target.