Stocks in Focus on May 21, 2020: TKN and AP

Stocks in Focus on May 21, 2020: TKN (KGI Securities TP at ฿11.50/share) and AP (Krungsri Securities TP at ฿8.50/share).

Kaohoon Online has selected stocks with a potential of high growth for investors to consider on May 21, 2020.

 

KGI Securities has given an “Outperform” rating on Taokaenoi Food & Marketing Public Company Limited (TKN) with a target price at ฿11.50/share.

KGI stated that after a downward trend in earnings over the past two years, KGI saw signs of TKN’s business and earnings recovering as cost reductions should boost 2020 earnings and revenue growth is expected to accelerate in 2021. Lower marketing expense is key. This was partially seen in 1Q20 and more will be seen in the coming quarters.

In this regard, KGI revised up the 2020/2021 earnings forecasts by 2%/19%, mainly from cutting opex.

 

Krungsri Securities (KSS) has given a “BUY” rating on AP (Thailand) Public Company Limited (AP) with a target price at ฿8.50/share.

KSS stated that AP will benefit from the rate cut in Thailand. Share price performance still lags peers, while AP is offering an attractive 8% dividend yield. In addition, AP’s net profit will continue to grow given it has the largest backlog in the sector. Thus, KSS projected FY20 net profit at Bt3.334b, up 8.7% YoY.

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