Stocks in Focus on June 5, 2020: PTTEP and GULF

Stocks in Focus on June 5, 2020: PTTEP (DBS Vickers Securities TP at ฿101.00/share) and GULF (Country Group Securities TP at ฿44.50/share).

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

 

DBS Vickers Securities (DBSVS) has raised the recommendation on PTT Exploration and Production Public Company Limited (PTTEP) from “Hold” to “BUY” with a target price at ฿101.00/share.

DBSVS raised PTTEP’s net profit in 2020 and 2021 by 19% and 48%, respectively, to reflect the positive forecast of Dubai crude, expecting to increase by 14% and 13%, respectively. Moreover, DBSVS expected PTTEP’s average gas sales to increase in 2021 by $5.80/mmbtu (+5%).

However, the core profit in 2Q20 remained weak, expecting -63%YoY and -41%QoQ to 5.1 billion baht due to lower quantity of gas sales and lower liquidity product selling price.

Nevertheless, DBSVS expected the demand and supply for oil prices to be more stable in 2H20 from output cut by OPEC+ and the return of demand from lockdown easing.

 

Country Group Securities (CGS) has given a “BUY” recommendation on Gulf Energy Development Public Company Limited (GULF) with a target price at ฿44.50/share.

CGS expected GULF to report a CAGR of revenue growth by 20% in 20-24E, supported by its 2.7Gwe production and more projects to come in the future, which could expand its size by three times. Moreover, the company had limited impact from the coronavirus outbreak due to only distributing 13% of its production to industrial estates, while 87% to EGAT. GULF could have more upside in the future around ฿10.60/share from its business expansion around 10Gw, which is in a feasibility process.