Stocks in Focus on April 2, 2020: CHG and TU

Stocks in Focus on April 2, 2020: CHG (Maybank Kim Eng TP at ฿3.20/share) and TU (Krungsri Securities TP at ฿17.50/share)

Kaohoon Online has selected stocks with a potential of high growth for investors to consider on April 2, 2020.

 

Maybank Kim Eng has given a “BUY” recommendation on Chularat Hospital Public Company Limited (CHG) with a target price of ฿3.20/share.

Maybank states that CHG is a hospital stock with limited impact from Covid-19 as its revenue from international patients accounting for only 4%. We expect its core earnings this year to grow 21%, driven by 2 new hospitals turning to profit and SSO increasing budget averaging 7% this year. Plus, CHG’s EBITDA margin is in the uptrend in the next few years.

 

Krungsri Securities has given a “BUY” recommendation on Thai Union Group Public Company Limited (TU) with a target price of ฿17.50/share.

KSS states that the 10% dip in the share price suggests investors have priced-in weaker Red Lobster performance. Meanwhile, tuna sales in the US and EU would jump by 50-60% in March-May, which would drive up utilization rate from 60-70%. TU is also a beneficiary of a weaker THB against USD and EUR. Every THB1 depreciation against the EUR would lift profit by Bt600m.