Stocks in Focus on October 15, 2020: CPF and SAT

Stocks in Focus on October 15, 2020: CPF (Asia Wealth Securities TP at ฿43.00/share) and SAT (Kasikorn Securities TP at ฿14.50/share).

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on October 15, 2020.

 

Asia Wealth Securities (AWS) has given a “BUY” recommendation on Charoen Pokphand Foods Public Company Limited (CPF) with a target price at ฿43.00/share.

AWS expected that the earnings in 3Q20 will grow 8% YoY and 9% QoQ because of the pork price in the region stabilized at a high level. AWS expected CPF’s revenue to grow 11% YoY and 2% QoQ on the back of higher QoQ sales volume, as well as growing shrimp business in Thailand after a more domestic focus.

Meanwhile, AWS also expected the gross profit margin of 3Q20 at 18.5%, higher than 2Q20 at 18.1%. Also, the feed costs increased, expected to not affect because the futures price has been locked up to the beginning of 2021 and expected that the feed cost in 2020 will be cheaper than 2019.

 

Kasikorn Securities (KS) has given a “BUY” recommendation on Somboon Advance Technology Public Company Limited (SAT) with a target price at ฿14.50/share.

KS stated that SAT is a safe investment on an auto recovery theme and expected it to swing from a loss of Bt143mn in 2Q20 to a profit from 3Q20 onward. KS forecasted 2021/22 earnings growth of 23%/38% YoY on a recovery of auto production, a wider GPM of 14%/15% in 2021/22 vs. 13% in 2020.

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