Stocks in Focus on September 2, 2020: JMT and SMPC

Stocks in Focus on September 2, 2020: JMT (Maybank Kim Eng TP at ฿39.00/share) and SMPC (KTB Securities TP at ฿16.00/share).

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on September 2, 2020.

 

Maybank Kim Eng has given a “BUY” recommendation on JMT Network Services Public Company Limited (JMT) with a target price at ฿39.00/share.

Maybank stated that JMT’s earnings were projected to reach new highs in 2H20 driven by stronger debt collection and fully-amortized debt. More importantly, Maybank added that the expiry of the debt relief program will create opportunities for JMT to acquire distressed assets.

 

KTB Securities (KTBST) has given an “Outperform” rating on Sahamitr Pressure Container Public Company Limited (SMPC) with a target price at ฿16.00/share.

KTBST was positive toward SMPC’s guidance at a group conference call as SMPC expected to maintain its 2020 growth target and was confident about its earnings growth. First, sales of household LPG tanks are estimated to grow 30% in 2020. Second, gross profit margin would remain flat HoH at 24% in 2H20, compared to 20.5% in 2019. Third, capacity utilization was at a high of 74-75% in July-August, a similar level to an average level seen in 1H20 (our 2020E estimate at 74% vs. 56% in 2019). Last, SMPC has forecasted its 2020-21E sales to grow 10-15% YoY and has a plan to extend its market presence overseas in 2021. KTBST thus maintained a 2020E net profit forecast at Bt617mn, which indicates a rise of +64%, while estimated 2H20E net profit to grow significantly +71% YoY.