Stocks in Focus on May 26, 2020: SPRC and SQ

Stocks in Focus on May 26, 2020: SPRC (Maybank Kim Eng TP at ฿8.00/share) and SQ (Maybank Kim Eng TP at ฿2.70/share).

Kaohoon Online has selected stocks with a potential of high growth for investors to consider on May 26, 2020.

 

Maybank Kim Eng has given a “BUY” recommendation on Star Petroleum Refining Public Company Limited (SPRC) with a target price at ฿8.00/share.

Maybank expected SPRC to post strong 2Q20 earnings in response to GRM in 2Q20 expected to significantly increase (USD4-5/bbl vs USD1.28 in 1Q20) driven by recovering gasoline spread and ME crude premium.

 

Maybank Kim Eng has given a “BUY” recommendation on Sahakol Equipment Public Company Limited (SQ) with a target price at ฿2.70/share.

Maybank expected 2Q20 earnings outlook to remain sound and improve YoY, which would benefit from higher amount of soil and coal excavation by Mae Moh 8 and Hongsa projects, while Mae Moh 7, (project ended), booked all expenses.

Moreover, Maybank raised its forecasts, with profit estimated at THB236m for this year, a jump from THB1m profit last year. SQ’s current backlog remains high at THB26b, supporting revenue until 2026.