Kaohoon Online has selected two stocks with a potential of high growth for investors to consider on October 29, 2019.
Kasikorn Securities (KS) has given a “BUY” recommendation on Indorama Ventures Public Company Limited (IVL) with a target price at ฿42.00/share.
KS states that IVL is trading below its 2019 book value of Bt28 and at -2.5SD (5-year low PBV). This week, PET and PTA spreads recovered for the first time in many weeks. Meanwhile, Huntsman posted double-digit profit growth QoQ in 3Q19, supported by a rising MEG spread.
Maybank has given a “BUY” recommendation on Singer Thailand Public Company Limited (SINGER) with a target price of ฿10.40/share.
Maybank expects 3Q19 earnings to grow from 1) sales revenue of THB370m (-34% YoY) due to declining mobile consignment sales (low margins), but sales of SINGER products in the commercial group, both refrigerators and washing machines, still grow YoY. A -10% QoQ growth is in line with seasonal factors, 2) GPM remained high at 47% in line with the strategy to focus on quality, 3) Loan portfolio of THB3.5b (+10% QoQ, +14% YoY) from C4C debtors after receiving funds from capital raising in July, bolstering interest income to grow +8% QoQ, +19% YoY, 4) NPL ratio was at 13.5% (+40bps vs QoQ), increasing in hire purchase by +60bps to 23.5% due to the economic slowdown while the C4C side remained flat at 0.5%, flat QoQ.