Stocks in Focus on July 2, 2020: ADVANC and GLOBAL

Stocks in Focus on July 2, 2020: ADVANC (KTB Securities TP at ฿225.00/share) and GLOBAL (KGI Securities TP at ฿19.00/share).

Kaohoon Online has selected stocks with a potential of high growth for investors to consider on July 2, 2020.

 

KTB Securities (Thailand) (KTBST) has raised its rating of Advanced Info Service Public Company Limited (ADVANC) from Hold to “BUY” with a target price at ฿225.00/share.

KTBST believed core profit will rebound in 2H20E after bottoming out in 2Q20E and forecasted 2Q20E core profit to decline -17% YoY, -4% QoQ to Bt6.9bn on lower core revenue (-7% YoY, -3% QoQ to Bt33bn), despite a potential decrease in SG&A expense. Major culprits would be 1) the government’s financial assistance measures (free voice calls and internet), and 2) a full-quarter loss on revenue from international visitors due to the COVID-19 lockdown, which results in SG&A expense falling -18% YoY, -8% QoQ given an absence of marketing activities and a suspension of operations in many branches. Thus, KTBST maintained its 2020E core profit forecast at Bt32bn, which sees no growth.

 

KGI Securities has given an “Outperform” rating on Siam Global House Public Company Limited (GLOBAL) with a target price at ฿19.00/share.

KGI expected weak 2Q20 earnings, however, upcoming public investment may act as a cushion in 2H20 and provide earnings upside in 2021. KGI assigned PER 34.0x based on 2021 EPS to capture the anticipated attractive earnings growth. KGI rolled over its target price to end-2021 at Bt19.00, from Bt14.60 (based on DCF valuation methodology). Given 12% upside and a supporting investment theme. In this regard, KGI upgraded the counter to Outperform, from Neutral.