Stocks in Focus on October 14, 2020: OSP and COM7

Stocks in Focus on October 14, 2020: OSP (KTB Securities TP at ฿54.00/share) and COM7 (Maybank Kim Eng TP at ฿45.50/share).

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

 

KTB Securities (KTBST) has given a “BUY” recommendation on Osotspa Public Company Limited (OSP) with a target price at ฿54.00/share.

KTBST forecasted OSP’s 3Q20E net profit to grow +8% YoY, +13% QoQ to Bt908mn as 1) beverage sales in the domestic market are estimated to rise +9% YoY, +14% QoQ on the back of stronger sales of C-Vitt, which appears to hit a quarterly record high, 2) revenue from personal care is expected to remain flat YoY but to increase +8% QoQ, 3) overseas revenue would decline -17% YoY but to improve +5% QoQ, and 4) gross profit margin would be 34%, down YoY but up QoQ.

In 4Q20E, KTBST estimated net profit to grow a further +28% YoY, +18% QoQ in expectation of higher sales during the shopping season, and stronger gross profit margin. Thus, KTBST maintained a 2020-21E net profit forecast at Bt3.7bn (+14%) and bt4.3bn (+16%).

 

Maybank Kim Eng has given a “BUY” recommendation on Com7 Public Company Limited (COM7) with a target price at ฿45.50/share.

Maybank stated that COM7 is gaining both short- and long-term support factors; i) The launch of the iPhone 12, which has the potential to take over Thailand’s 5G market share in the next 12 months, ii) the Shop Dee Me Kuen measure that directly benefits its middle-upper level customers while profit momentum has returned to normal pre-COVID-19 level and continues accelerating in 3Q20-4Q20.

Maybank raised its FY21-22 earnings forecast by 7-14%and rating to TRADING BUY with a DCF-based TP of THB45.50.