Kaohoon Online has selected stocks with a potentially high growth for investors to consider on February 8, 2021.
Maybank Kim Eng has given a “BUY” recommendation on Jay Mart Public Company Limited (JMART) with a target price at ฿31.50/share.
Maybank stated that JMART has transformed from a mobile phone shop to a strong parent company in the financial business, accounting for 80% of the profit. Restructuring as an Investment Holding Company has created a fully integrated J-Curve growth from the upstream to the downstream in the commercial-financial business (sell products-lending-debt management) with synergy.
Maybank saw three interesting aspects: i) record-breaking profit; ii) a bigger market growth strategy to build on the new S-Curve; and iii) Valuation that is still below the actual value while there are still a number of affiliates waiting to unlock and become upside risk to earnings growth estimates in the future.
Maybank Kim Eng has upgraded Bangkok Bank Public Company Limited (BBL) target price from ฿150.00/share to ฿160.00/share, while maintaining its “BUY” recommendation.
Maybank expected opex and credit cost of BBL to decline YoY in FY21E as BBL booked pre-emptive provisions and THB4b one-off integration cost in FY20. Maybank raised its FY21-22F earnings by 5-7% to reflect new financial targets.
The security company forecast earnings to jump 61% and 16% for this year and next YoY. Maintain BUY and raised TP to THB160 (0.65x FY21E P/BV, 7.8% ROE) from THB150. The stock is trading at 0.5x FY21E P/BV, which is 2SD below its historical mean. Key risks are lower-than-expected NIM and deterioration in asset quality.