Stocks in Focus on August 13, 2020: SPALI and PRM

Stocks in Focus on August 13, 2020: SPALI (KGI Securities TP at ฿19.60/share) and PRM (KTB Securities TP at ฿12.70/share).

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on August 13, 2020.

 

KGI Securities has given an “Outperform” rating on Supalai Public Company Limited (SPALI) with a target price at ฿19.60/share.

KGI stated that the report of Bt420mn (-45% YoY, -44% QoQ) in 2Q20 net profit was 18% below KGI’s forecast and 14% below the market consensus. Although 1H20 net profit accounted for 30% of its full-year forecast, KGI expected earnings to resume strong growth momentum in 2H20 due to strong improvement in low-rise transfers and revenue visibility propelled by four new condominium projects queuing to be transferred.

 

KTB Securities (Thailand) (KTBST) has given a “BUY” recommendation on Prima Marine Public Company Limited (PRM) with a target price at ฿12.70/share.

KTBST stated that PRM reported 2Q20 earnings results that exceeded Bloomberg consensus and KTBST’s forecast by 20-28%. Net profit grew significantly +52% YoY, +66% QoQ to Bt442mn, marking a record high. Excluding extra items (FX gain and impairment loss on FSUs, core profit skyrocketed +100% YoY, +42% QoQ to Bt488mn.

Such a significant growth was contributed to an increase in FSU’s rent rates, which boosted KTBST thus raised 2020-2021E net profit forecast by 20-13% to Bt1.59bn (+55% YoY) and Bt1.78bn (+12%) to reflect stronger blended gross profit margin.