Kaohoon Online has selected stocks with a high-growth potential for investors to consider on July 30, 2021.
Asia Wealth Securities (AWS) has given a “BUY” recommendation on Sri Trang Agro-Industry Public Company Limited (STA) with a target price at ฿48.00/share.
AWS expected STA’s 2Q21 net profit to grow YoY but decrease QoQ, while total revenues grew YoY and QoQ from the natural rubber business which offset the lower profit from the rubber glove business, while estimate the gross margin at 35%, higher YoY but down QoQ. AWS revised down net profit in 2022 to reflect weaker rubber gloves business and expected the 3Q21 outlook to recover QoQ due to higher production capacity of latex gloves.
Maybank Kim Eng Securities (MBKET) has given a “BUY” recommendation on Bangkok Bank Public Company Limited (BBL) with a target price at ฿160.00/share.
MBKET believed the pandemic has minimal impact on BBL as it focuses on lending to large corporates (40% of total loans). The securities company forecasted earnings to jump 61% and 16% YoY for this year and next YoY, thanks to lower provisions and opex. BUY and TP of THB160 (0.65x FY21E P/BV, 7.8% ROE). The stock is trading at 0.4x FY21E P/BV, 2SD below its historical mean. Key risks are lower-than-expected NIM and deterioration in asset quality.