Stocks in Focus on October 2, 2020: AMA and SINGER

Stocks in Focus on October 2, 2020: AMA (Krungsri Securities TP at ฿6.20/share) and SINGER (KGI Securities FV at ฿17.00/share).

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

 

Krungsri Securities (KSS) has given a “BUY” recommendation on AMA Marine Public Company Limited (AMA) with a target price at ฿6.20/share.

KSS stated that AMA’s 3Q20 profit would increase significantly over the lockdown easing in China which would boost sea freight transportation. Meanwhile, road transportation continued in the positive direction with support from the government in B10 and B20 fuel.

 

KGI Securities has given an “Outperform” rating on Singer Thailand Public Company Limited (SINGER) with a fair value at ฿17.00/share.

KGI initiated its coverage on SINGER with an “Outperform” rating, stating that it operated two business lines: i) selling and leasing/HP home electrical appliances (80% of revenue), and ii) title loans for large vehicles. Its  loan portfolio of Bt4.4bn consists of Bt1.9bn in title loans and Bt2.5bn in leasing home electronic appliances.

KGI assumed loan volume growth of 50%/30%/20% in 2020/2021/2022 to boost earnings given stable loan yield and credit cost. Risk to our forecast is based on provisioning expense. Thus, KGI assigned P/E at 16x, on par with its long-term average, reaching a 2021F fair value of Bt17.00.