Stocks in Focus on July 17, 2020: DRT and STEC

Stocks in Focus on July 17, 2020: DRT (Maybank Kim Eng TP at ฿7.00/share) and STEC (KGI Securities TP at ฿19.20/share).

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on July 17, 2020.


Maybank Kim Eng has given a “BUY” recommendation on Diamond Building Products Public Company Limited (DRT) with a target price at ฿7.00/share.

Maybank expected a surprising 2Q20 profit at THB180m (+7% QoQ, +36% YoY) despite the impact from Covid-19 and the consolidating market due to higher gross profit margin. Maybank also raised earnings forecasts for DRT, while normalized profit this year was expected to grow by 7%.

Maybank stated that the current share price was trading at P/E as low as 9.8x and had a good dividend yield of 7.3%. Thus, Maybank recommended BUY on weakness after the share price jumped 6.4% yesterday.


KGI Securities has given an “Outperform” rating on Sino-Thai Engineering & Construction Public Company Limited (STEC) with a target price at ฿19.20/share.

KGI expected STEC to report 2Q20 earnings of Bt280mn (+4.5% YoY, +33.7% QoQ). Earnings should increase QoQ due to dividend income from Gulf Energy Development (GULF) and Thai Solar Energy (TSE). Meanwhile, the company had also purchased a Request for Proposal documents (RFP) for MRT Orange Line West last week.

STEC has a current backlog of Bt93bn which secured revenue for approximately 3.5-4 years (including the first phase backlog of Bt20bn of U-Tapao Airport city). Meanwhile, there would be an incoming backlog from MRT Pink Line extension (Bt2bn), etc. in the short term.