Stocks in Focus on December 15, 2020: BEC and SCC

Stocks in Focus on December 15, 2020: BEC (KTB Securities TP at ฿8.70/share) and SCC (Maybank Kim Eng TP at ฿430.00/share).

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

 

KTB Securities (Thailand) (KTBST) has given a “BUY” recommendation on BEC World Public Company Limited (BEC) with a target price at ฿8.70/share.

KTBST reiterated a BUY rating on BEC but raise a target price to Bt8.70 from Bt6.20 and re-rate its 2021E PER multiples to 38.0x (the same level as the media sectors average level) from 27.0x to reflect increasingly positive view of BECs 2021E earnings outlook.

In 4Q20E, KTBST forecasted net profit to continue to recover significantly YoY and to grow further QoQ as 1) ad revenue is expected to rise QoQ given a further ad revenue growth MoM in October-November and higher capacity utilization, 2) revenue from global content licensing (GCL) is expected to close to a Bt151mn recorded in 2Q20 (Bt66.0mn in 3Q20), 3) digital ad revenue would increase QoQ to Bt150mn, and 4) gross profit margin would widen YoY, QoQ high operating leverage. We thus maintain our earnings forecast at a net loss of Bt371mn in 2020E and a net profit of Bt459mn in 2021E.

 

Maybank Kim Eng has given a “BUY” recommendation on The Siam Cement Public Company Limited (SCC) with a target price at ฿430.00/share.

Maybank stated that SCC’s earnings outlook will enter a growth stage driven by all three businesses. The petrochemical business will see production capacity increase 70%, focusing on HVA and innovation, the cement-building material products (CMB) business focuses on services and solutions to retail while the comprehensive packaging business aiming to achieve double growth over the next five years.