Stocks in Focus on August 14, 2020: ORI and JMT

Stocks in Focus on August 14, 2020: ORI (KTB Securities TP at ฿9.70/share) and JMT (KGI Securities TP at ฿40.00/share).

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on August 14, 2020.

 

KTB Securities (Thailand) (KTBST) has given a “BUY” recommendation on Origin Property Public Company Limited (ORI) with a target price at ฿9.70/share.

KTBST raised ORI’s target price from Bt7.70 to Bt9.70 as the security company was increasingly positive toward ORI’s earnings outlook. First, ORI is confident about its 2020E revenue growth target of +14% YoY to Bt14bn in light of improved demand and its on-track condo transfers. Last, the company believes demand from international customers, particularly from China, will likely continue to grow, while the country’s permission to enter for the medical tourist group should help fuel demand.

ORI yesterday reported 2Q20 earnings results that exceeded Bloomberg consensus and KTBST’s forecast by 36%. Net profit contracted -4% YoY but grew +19% QoQ to Bt707mn. Core profit, however, jumped +22% YoY, +71% QoQ as 1) total revenue grew +9% YoY, +58% QoQ; 2) SG&A to sales contracted to 13.6% compared to 22.9% in 2Q19 and 24.3% in 1Q20 following a shift of focus to the online channel. KTBST thus raised 2020-21E net profit forecast by 12-8%.

 

KGI Securities has given an “Outperform” rating on JMT Network Services Public Company Limited (JMT) with a target price at ฿40.00/share.

JMT reported 2Q20 earnings of Bt226mn (+10% QoQ, +53% YoY). The result was 10% above KGI’s forecast. The company’s 1H20 earnings were Bt433mn (+45% YoY), accounting for 51% of KGI’s full-year forecast. Though 2Q20 earnings showed solid growth, it isn’t at full-scale yet in either debt collection services or cash collection from trouble debt. The high season for revenue in the second half and ability to grow the portfolio, indicate the full-year earnings forecast in 2020 may have some upside surprise. At this level, KGI maintained its earnings forecast and had a bullish tone with a 2021 target price of Bt40.00 (PE 35x).