Stocks in Focus on October 19, 2020: DRT and KCE

Stocks in Focus on October 19, 2020: DRT (Maybank Kim Eng TP at ฿7.00/share) and KCE (Maybank Kim Eng TP at ฿40.00/share).

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on October 19, 2020.

 

Maybank Kim Eng has given a “BUY on Weakness” recommendation on Diamond Building Products Public Company Limited (DRT) with a target price at ฿7.00/share.

Maybank expected DRT’s 3Q20 profit to drop to THB110m (-40% QoQ, -15% YoY) and continue slowing down in 4Q20. Full year earnings may slightly drop due to several negative factors but should grow slightly next year, thanks to new capacity, better production efficiency and lower costs. The current share price is trading at a low P/E of 9.9x while offering a good dividend yield of 6.6%. Thus, Maybank recommended BUY on weakness as 2H20 profits may drop.

 

Maybank Kim Eng has given a “BUY” recommendation on KCE Electronics Public Company Limited (KCE) with a target price at ฿40.00/share.

Maybank expected the EU’s new vehicle registration expanded +3.1% YoY in September, the first increase YoY since the beginning of 2020. The expansion should add more positive psychological sentiment to investment in KCE whose revenue proportion contributed by European markets is more than 50% of the total.