Kaohoon Online has selected stocks with a potential of high growth for investors to consider on May 25, 2020.
KGI Securities has given an “Outperform” rating on Ratch Group Public Company Limited (RATCH) with a target price at ฿76.00/share.
KGI stated that RATCH targeted to increase by 700-800MWe in 2020. New capacity would be mostly from overseas M&A. There is some upside from Hin Kong LNG shipper license due to imported LNG (low teens margin from cost plus model). The power plant itself would not benefit from LNG as the energy payment structure is passed through based on average pooled gas price.
The company’s 2Q20 core earnings are likely to decline YoY and QoQ due to major maintenance of Hongsa (Unit 3) and RG (Unit 3). RATCH’s operation remains resilient against COVID-19 as most of its equity MW are IPP. The current share price also provides attractive dividend yields of 3.8% and 4.1% in 2020 and 2021.
Maybank Kim Eng has given a “BUY” recommendation on Global Power Synergy Public Company Limited (GPSC) with a target price at ฿80.00/share.
Maybank stated that a sharp decline in gas cost may help offset revenue from selling electricity to industrial estate that has partially fallen. Plus, revenue sharing from Xaiyaburi project that was expected to improve in 2Q20-3Q20 as water volume in dam started to increase in April by +40%MoM.