Stocks in Focus on November 30, 2020: RATCH and COM7

Stocks in Focus on November 30, 2020: RATCH (KGI Securities TP at ฿74.00/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 November 30, 2020.

 

KGI Securities has given an “Outperform” rating on Ratch Group Public Company Limited (RATCH) with a target price of ฿74.00/share.

KGI stated that RATCH’s management targets to increase renewable installed capacity to 25% of the company’s total portfolio from a current 14.4% by 2025. This would be positive news for ESG criteria. Coal installed capacity currently accounts for 10.9% of the total portfolio. Hongsa Power Plant is likely to achieve 80% EAF in 2020 and management targets to achieve 85.6% (our assumption is 81%).

RATCH issued green debenture (Bt8bn) in November 2020 that provides annual financial cost savings of Bt99mn. The proceeds would be used for i) renewable energy projects and ii) clean transportation of Bt1.3bn.

 

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’s 4Q20 earnings outlook should continue growing strongly, combined with upside risk from iPhone 12, government’s stimulus measures to boost consumption and 5G. This should help drive sales to continue accelerating.