Stocks in Focus on May 5, 2020: BJCHI and PYLON

Stocks in Focus on May 5, 2020: BJCHI (Maybank Kim Eng TP at ฿2.50/share) and PYLON (Asia Wealth Securities TP at ฿5.60/share).

Kaohoon Online has selected stocks with a potential of high growth for investors to consider on May 5, 2020.

 

Maybank Kim Eng has given a “T-BUY” recommendation on BJC Heavy Industries Public Company Limited (BJCHI) with a target price at ฿2.50/share.

Maybank forecasts 1Q20 normalised profit to drop to THB10m (-79% QoQ, -69% YoY). Including FX gains, net profit should jump to THB60m (+136% QoQ, +1,868% YoY). Backlog stays high at THB4.7b. Maybank expects 2020 earnings to improve better. BJCHI has a strong financial status, without debt, while having high cash in hand, with a good dividend yield of 9%. Thus, Maybank recommends a TRADING BUY on weakness, due to poor 1Q20 normalised profit.

 

Asia Wealth Securities (AWS) has given a “BUY” recommendation on Pylon Public Company Limited (PYLON) with a target price at ฿5.60/share.

AWS expects PYLON’s 1Q20 net profit to make a net high at 100 million baht, increasing 25% YoY and 9% QoQ mainly due to the positive factors from the accelerated construction of the Queen Sirikit National Convention Center.

Meanwhile, the GPM is expected to be flat QoQ due to the high proportion of labor cost works, while the earnings are expected to soften during 2Q20 before accelerating again in 2H20 after gradually accelerating auctions for government construction projects. Moreover, PYLON has a high Dividend Yield strength compared to the industry approximately 6.5%.