Stocks in Focus on April 17, 2020: CHG and MTC

Stocks in Focus on April 17, 2020: CHG (Maybank Kim Eng TP at ฿3.00/share) and MTC (KTB Securities TP at ฿52.00/share).

Kaohoon Online has selected stocks with a potential of high growth for investors to consider on April 17, 2020.

 

Maybank Kim Eng has given a “BUY” recommendation on Churalat Hospital Public Company Limited (CHG) with a target price at ฿3.00/share.

Maybank expects CHG’s core earnings to increase 13% YoY to THB 203 million with limited impact from Covid-19. Meanwhile, revenue from Social Securities Office (SSO) patients have increased and will partially offset. In addition, Maybank expects two new hospitals losses will gradually decline and turnaround in 2H20.

 

KTB Securities (Thailand) (KTBST) has given a “BUY” recommendation on Muangthai Capital Public Company Limited (MTC) with a target price at ฿52.00/share.

KTBST stated that it reiterates a BUY rating on MTC and a target price of Bt52.00, which is pegged to 2020E PBV of 5.6x (-1.5 SD below its 5-yr average). KTBST states that a cut of ceiling interest rate for unsecured loan (personal loan) to 22% from 25% may result in MTC’s 2020E net profit forecast declining by just Bt29mn, which should be offset by a reduction in cost of fund by Bt14mn per year given the 2%-rate soft loan from the Government Saving Bank.

In 1Q20, KTBST expects MTC’s net profit to grow +16% YoY, +3% QoQ to Bt1.2bn, as total loan would jump +24% YoY and thus maintain 2020E net profit forecast of Bt4.55bn, which represents a growth of +7% YoY.