Stocks in Focus on August 10, 2020: CPF and CHAYO

Stocks in Focus on August 10, 2020: CPF (Maybank Kim Eng TP at ฿39.20/share) and CHAYO (KTB  Securities TP at ฿10.00/share).

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on August 10, 2020.

 

Maybank Kim Eng has given a “BUY” recommendation on Charoen Pokphand Foods Public Company Limited (CPF) with a target price at ฿39.20/share.

Maybank expected CPF’s 2Q20 earnings to grow 13% YoY, benefiting from a significant increase in Vietnamese swine prices. Moreover, earnings outlook should grow stronger in 3Q20, driven by domestic meat prices recover. In addition, Maybank expected Vietnamese swine prices should remain high for at least two years due to supply shortages.

 

KTB Securities (Thailand) (KTBST) has given a “BUY” recommendation on Chayo Group Public Company Limited (CHAYO) with a target price at ฿10.00/share.

KTBST expected better profit earnings for CHAYO during the economic slowdown as NPL grew, especially 4Q20 onwards (from COVID-19). CHAYO’s NPL portfolio was expected to grow +86%  during 2018-2020 CAGR. Moreover, the company has strong financial status with a low IBD/E  in 2020E-2021E at 0.8-1.1x, resulting in the ability to purchase more debt. KTBST expected CHAYO’s earnings in 2Q20 to come in at 49 million baht (+47% YoY, +33% QoQ), making a new high from interest income (+65% You, +4% QoQ).