Stocks in Focus on November 11, 2020: GFPT and AP

Stocks in Focus on November 11, 2020: GFPT (KGI Securities TP at ฿14.50/share) and AP (KGI Securities TP at ฿8.50/share).

 

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on November 11, 2020.

 

KGI Securities has given an “Outperform” rating on GFPT Public Company Limited (GFPT) with a target price at ฿14.50/share.

GFPT reported a 3Q20 core profit of Bt315mn (-19.6% YoY, +32.3% QoQ), in line with KGI’s estimate but 5.4% above the consensus. KGI expected earnings to soften in 4Q20 due to a seasonal low domestic broiler price. 

In 2021, GFPT should benefit from replacement capacity, which should be able to fully ramp up in 2H21. Also, potential insurance proceeds should provide upside to our 2020F earnings estimate. 

 

KGI Securities has given an “Outperform” rating on AP Public Company Limited (AP) with a target price at ฿8.50/share.

AP reported a record high 3Q20 net profit of Bt1.45bn (+134% YoY, +19% QoQ), in line with expectations. Key drivers were: i) impressive residential transfers, ii) improving gross margin QoQ, and iii) a record high share income from JVs. 

Looking ahead, KGI believed AP is still in a better position than local peers due to: i) solid condominium backlog on hand, ii) impressive low-rise performance, and iii) manageable D/E ratio of 1.1x in 2020F. 

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