Kaohoon Online has selected stocks with a high-growth potential for investors to consider on August 6, 2021.
Asia Wealth Securities (AWS) has given a “BUY” recommendation on PTT Exploration and Production Public Company Limited (PTTEP) with a target price at ฿140.00/share.
AWS stated that from a conference with PTTEP regarding the Erawan Project (G1/61 Project), the securities company had an opinion that currently, the project is producing at 500mn cubic feet per day, lower than the PSC contract specified. However, PTTEP plans to increase gas production from the Bongkot project and the Arthit project (approximately 200mn cubic feet per day), the rest from PTT’s gas import negotiations to reduce the impact on PTTEP’s sales.
In the worst case scenario, AWS estimated that every 100mn cubic feet per day will affect sales around 3.6%-3.7% of our 2022 and 2023 sales targets and average 2%-3% net profit for 2022 – 2023 which in 2022-2023 at the firm set sale target at 436 thousand barrels per day (+6%YoY) and 4.46 thousand barrels per day (+2%YoY), respectively.
AWS estimated that in the worst case, the impact on earnings forecasts is quite limited. Meanwhile, the recovering oil price will make PTTEP attractive again.
Finansia Syrus Securities (FSS) has given a “BUY” recommendation on Stars Microelectronics (Thailand) Public Company Limited (SMT) with a target price at ฿8.00/share.
FSS stated that SMT’s 2Q21 earnings was 7% better-than-expected as the gross profit margin rose to 20.2%, which was close to the estimate.
The securities company pointed out that SMT has pending orders covered to the end of this year, while having more volume than the first half of 2021 by 23%, coupled with the weakening Thai baht. More importantly, the company did not receive impact from the microchip shortage as well.
FSS expected earnings will continue to accelerate in 2H21 with a possibility of reaching a new high in 4Q21. In addition, FSS estimated normalized profit in 2021-22 to grow 174.7% and 33.1%, respectively.