Stocks in Focus on August 18, 2020: COM7 and BEM

Stocks in Focus on August 18, 2020: COM7 (KTBST Securities TP at ฿45.00/share) and BEM (KGI Securities TP at ฿11.70/share).

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on August 18, 2020.

 

KTB Securities (Thailand) (KTBST) has reiterated the “BUY” rating on Com7 Public Company Limited (COM7) and raised the target price from ฿37.00/share to ฿45.00/share.

KTBST had a positive outlook on COM7’s 2020E-21E earnings.COM 7 stated that revenue is estimated to increase, particularly from the online channel, and blended gross profit margin would rebound from a low level recorded in 2Q20.

KTBST upgraded 2020E-21E net profit forecast by 3-10% to Bt1.27bn (+5% YoY) and Bt1.53bn (+20%). In the near term, KTBST estimated 2H20E net profit to grow +6% YoY, +27% HoH, as the upcoming launch of iPhone 12 in October may drive average sales per bill up and thereby revenue by +4% YoY, +17% HoH.

The target price of ฿45.00/share reflected earnings forecast upgrade and growing demand for 5G-compatible devices/gadget and IoT.

 

KGI Securities has given an “Outperform” rating on Bangkok Expressway and Metro Public Company Limited (BEM) with a target price at ฿11.70/share.

KGI stated that the current toll traffic volume is near normal and ridership is still on a V-shaped recovery. There is no concern about net IBD/E for bidding on the MRT Orange Line West project. Management also expressed confidence in its bidding capability given its strong track record as MRT operator and economies of scale benefit and Ch.Karnchang (CK)’s strength in underground construction.

KGI expected 2021 earnings to grow 84.7% due to the resumption of traffic volume and ridership. MRT Orange Line West would be a key short-term catalyst. However, no matter who the winner is, BEM will still gain ridership benefits from commercial operation of MRT Orange Line East (2024).