Stocks in Focus on August 17, 2020: OSP and EGCO

Stocks in Focus on August 17, 2020: OSP (KGI Securities TP at ฿49.00/share) and EGCO (KGI Securities TP at ฿370.00/share).

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

 

KGI Securities has given an “Outperform” rating on Osotspa Public Company Limited (OSP) with a target price at ฿49.00/share.

KGI maintained its positive view toward OSP’s business outlook in 2H20, believing that the company will benefit from increased manufacturing capacity (especially C-Vitt) and improved domestic consumption after the easing of lockdown measures.

Meanwhile, KGI rolled over its base year to end-2021 and derived a new PER-based target price of Bt49.00, pegged at an unchanged target PER of 33.0x.

 

KGI Securities has given an “Outperform” rating on Electricity Generating Public Company Limited (EGCO) with a target price at ฿370.00/share.

EGCO reported a 2Q20 core profit of Bt2.6bn (-8.9% YoY, +13.5% QoQ). The result was in line with KGI’s forecast but 5.4% below the Bloomberg consensus. There was unrealized FX gain of Bt2.44bn leading to a 2Q20 net profit of Bt5.0bn (+28.5% YoY, +1,327.7% QoQ). 1H20 core profit was Bt5.0bn (-16.3% YoY), accounting for 44.4% of our full-year forecast.

Thus, KGI maintained a rating of Outperform with a 2020 DCF-based target price of Bt370. The share price has dropped 21.8% during the past four months. The company’s resilient operation and limited impact from COVID-19 would provide a good opportunity to accumulate the stock.

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