Stocks in Focus on October 11, 2019: EKH and OSP

Stocks in Focus on October 11, 2019: EKH (KGI Securities TP ฿8.70/share) and OSP (KTB Securities TP ฿40.00/share).

Kaohoon Online has selected two stocks with a potential of high growth for investors to consider on October 11, 2019.



KGI Securities estimates Ekachai Medical Care Public Company Limited (EKH)’s 3Q19 net profit at 49 million baht (+7.1% YoY, +26.7% QoQ). Its 3Q19F and 9M19F earnings should account for 30% and 81% of our full-year earnings forecast of 161 million baht, respectively. For 2019-20F, KGI maintains its estimate for an average of 300 and 400 IVF patients, based on the company’s target. KGI maintains its full-year earnings estimates at Bt161mn (+37.4% YoY) in 2019F and Bt184mn (+14.3% YoY) in 2020F.

Thus, KGI maintains a rating of Outperform, with a mid-2020 target price of Bt8.70 (based on DCF valuation).



KTB Securities (Thailand) (KTBST) has reiterated BUY rating on Osotspa Public Company Limited (OSP) with an unchanged target price of Bt40.00, which implies 2020E PER of 30.2x. KTBST forecasts 3Q19E net profit to grow +8% YoY, +17% QoQ to Bt831mn on 1) stronger domestic sales (+10% YoY, +7% QoQ to Bt4.53bn), 2) higher personal care sales (+12% YoY, -6.2% QoQ), 3) an increase in overseas sales (+2% YoY, -18.5% QoQ), 4) a wider gross profit margin of 34.8% (vs. 31.8% in 3Q18, 35.3% in 2Q19), 5) higher SG&A to sales to 22.8%.

9M19E net profit will account for 72% of our full-year estimate, but KTBST keeps its 2019E forecast unchanged at Bt3.39bn, up +13% YoY, as KTBST believes 4Q19E earnings will continue to grow YoY, QoQ on seasonally stronger demand, an extension of energy drink to Vietnam, and new functional and energy drink products.

OSP’s share price has gained 25% over the past six months. Thus, KTBST sees the stock rising further given brighter earnings prospects with our estimated CAGR of 13.5% in 2019-21E and strong growth potential in 2020.


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