Stocks in Focus on April 9, 2020: STEC and BCH

Stocks in Focus on April 9, 2020: STEC (KTB Securities TP at ฿18.00/share) and BCH (KGI Securities TP at ฿22.30/share).

Kaohoon Online has selected stocks with a potential of high growth for investors to consider on April 9, 2020.

 

Krungsri Securities (Thailand) (KTBST) has given a “BUY” recommendation on Sino-Thai Engineering and Construction Public Company Limited (STEC) with a target price at ฿18.00/share.

KTBST states that the news of progression in the signing agreement of U-tapao Airport and Eastern Airport City Project in May is a positive factor to STEC as STEC expected the construction value to be 20 billion baht, which would add up to its backlog in 2020 to record at 84 billion baht. Moreover, STEC is still waiting for the signing of O&M M6 and M81 worth 5 billion baht. The construction of the extension of the Pink Line rapid train is also worth 2.5 billion baht.

 

KGI Securities has given an “Outperform” rating on Bangkok Chain Hospital Public Company Limited (BCH) with a target price at ฿22.30/share.

KGI expects BCH to report a 1Q20 earnings of Bt251mn (+1.1% YoY, +4.1% QoQ), accounting for 21% of KGI’s full-year estimate. Although the company’s 1Q20 performance should grow at a slower pace due to the COVID-19 outbreak, we think that it is in a better position than other companies. Furthermore, BCH could mitigate the risk from adjustments to social security fees since January 2020.