Stocks in Focus on April 27, 2020: CBG and JKN

Stocks in Focus on April 27, 2020: CHG (KGI Securities TP at ฿3.10/share) and JKN (KTB Securities TP at ฿5.00/share).

Kaohoon Online has selected stocks with a potential of high growth for investors to consider on April 27, 2020.

 

KGI Securities has maintained its “Outperform” rating on Chularat Hospital Public Company Limited (CHG) with a target price at ฿3.10/share.

KGI expects CHG to report 1Q20 earnings of Bt183mn (+2.3% YoY, +36.6% QoQ), which would account for 21% of the full-year forecast of Bt872mn. KGI thinks that CHG will continue to grow its other 11 hospitals this year, including the two new hospitals (Chularat 304 & RPC).

KGI recommends CHG for the benefit from increases in medical fees from SSO this year. Moreover, CHG looks better than peers considering its low revenue contribution from international patients.

 

KTB Securities (Thailand) (KTBST) has maintained a “BUY” recommendation on JKN Global Media Public Company Limited (JKN) with a target price at ฿5.00/share.

KTBST forecasts 1Q20E net profit to grow +6% YoY, +71% QoQ to Bt86mn as total revenue is expected to rise +6% YoY, +8% QoQ on stronger revenue from domestic and overseas markets, and gross profit margin would remain flat YoY, QoQ at 43.3%.

According to KTBST’s inquiries, JKN said its account receivables aging has improved, and thus KTBST maintains 2020E net profit forecast of Bt277mn (+9.4%), which is more conservative than the company’s target.

JKN’s share price outperformed the SET Index by 16% in three months given a limited impact from the COVID-19 outbreak. KTBST expects demand for JKN’s content to rise given relatively lower cost compared to in-house production, while TV operators have cut the cost of their own produced content to cope with a reduction in ad spending. Coupled with the strong 1Q20E earnings outlook, seeing the share price rising on earnings speculation.