Stocks in Focus on February 6, 2020: CK and EGCO
Stocks in Focus on February 6, 2020: CK (Kasikorn Securities TP at ฿26.40/share) and EGCO (KGI Securities TP at ฿370.00/share).
Stocks in Focus on February 6, 2020: CK (Kasikorn Securities TP at ฿26.40/share) and EGCO (KGI Securities TP at ฿370.00/share).
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Kaohoon Online has selected stocks with a potential of high growth for investors to consider on February 6, 2020.
 
Kasikorn Securities (KS) has given a “BUY” recommendation on CH. Karnchang Public Company Limited (CK) with a target price at ฿26.40/share.
Kasikorn Securities (KS) sees that contractors will benefit from the Constitutional Court’s ruling on the FY2020 budget bill validity on Feb 7, which is much sooner than the market expected. Stocks dumped on such concern will likely recover as worries ease. CK is also awaiting a positive outcome of Orange line bidding, which could lead to substantial upside. Current valuation looks undemanding at P/BV below -1SD.
 
KGI Securities has upgraded the rating of Electricity Generating Public Company Limited (EGCO) from an “Underperform” to an “Outperform” with a target price at ฿370.00/share.
KGI expects EGCO to report a 4Q19 core profit of Bt2.3bn (+40.6% YoY, -9.6% QoQ). The improvement YoY would be due to Paju contribution and commercial operations of SBPL and XPCL. The decline QoQ would be due to the low IPP weighting factor. In the quarter there were unplanned maintenance shutdowns of NT2 and QPL and planned maintenance shutdown of BLCP.
KGI includes Bt30/sh upside from the oil pipeline, wind project in Taiwan and coal-fired project in Vietnam. EGCO is KGI’s top pick for conventional power plants. The company’s operating performance should not be impacted by the coronavirus outbreak and economic slowdown.