Kaohoon Online has selected stocks with a potential of high growth for investors to consider on June 23, 2020.
KTB Securities (Thailand) (KTBST) has given a “BUY” recommendation on Mega Lifesciences Public Company Limited (MEGA) with a target price at ฿44.00/share.
KTBST stated that the valuation was rolled forward to 2021E base, which results in a rise of target price to Bt44.00 from Bt35.00, while 2021E PER increased to 27.7x (+0.75 SD above its 5-yr average) from 24.3x 2020E PER (a similar level to its 5-yr average).
KTBST remained positive toward MEGA’s earnings outlook as sales of dietary supplements are forecasted to grow further given a threat from a second wave of the COVID-19 outbreak, which KTBST believed will prompt people to strengthen their immune system; and 2) development of COVID-19 vaccines appears to take some time.
Thus, KTBST, maintained the 2020E net profit forecast at Bt1.26bn, which indicates a growth of +11% and forecast 2021E net profit to grow a further +10% to Bt1.39bn. Any further delay to develop the COVID-19 vaccines would provide an upside to the forecast.
KGI Securities has given an “Outperform” rating on Bangkok Dusit Medical Services Public Company Limited (BDMS) with a target price at ฿27.00/share.
KGI expected the biggest impact from the COVID-19 to be seen in 2Q20, driven by the closure of airports to curb the outbreak. Considering the current situation, KGI was less negative about the COVID-19 outbreak in CLMV, China and Thailand for 2H20.
Meanwhile, the security company fine-tuned its assumptions with a more optimistic outlook. Thus, KGI raised the forecasts 3.9% to a net profit of Bt6.84bn in FY20F and 12.3% to Bt7.96bn in FY21F. KGI maintained a rating of Outperform with a mid-2021 target price of Bt27.00 (DCF; WACC 8.0% and TG of 2.0%).