Stocks in Focus on October 28, 2019: BEM and Seafood Business
Stocks in Focus on October 28, 2019: BEM (Asia Wealth Securities TP ฿12.50/share) and Seafood Business.
Stocks in Focus on October 28, 2019: BEM (Asia Wealth Securities TP ฿12.50/share) and Seafood Business.
28 ต.ค. 2562

Kaohoon Online has selected two stocks with a potential of high growth for investors to consider on October 28, 2019.
 
Asia Wealth Securities (AWS) recommends “BUY” Bangkok Expressway and Metro Public Company Limited (BEM) with a target price at ฿12.50/share.
Initially, AWS expects BEM to have a 3Q19 net profit of Bt905mn, decreasing both QoQ and YoY, due to no extra profit like 3Q18 and 2Q18. However, normalized profit will still grow by 15.5% QoQ from the number of passenger trains and average revenue per day increased after the opening of the Blue Line extension.
 
KTB Securities views the GSP suspension by the US as an insignificant impact on the relevant listed firms after the United States Trade Representative (USTR) announced to suspend 573 goods from Thailand, which is set to take effect on April 25, 2020. The suspension includes seafood, fruits and vegetables, seeds, syrup and sugar, soybean sauce, vegetable and fruit juices, kitchenware, plywood doors and window frames, ornaments, steel sheet, and some stainless steel products.
The Ministry of Commerce said the move would result in Thai export value falling by a mere 0.01% per annum given the goods under the GSP suspension will face an increase in import tariffs of 4.5%, or USD50mn.
KTB expects a limited impact from the GSP suspension on the agriculture and food sector, while the baht strengthening may pose a threat to earnings performance. KTBST maintains BUY call on ASIAN with an unchanged target price of Bt6.50, which implies 2020E PER of 12.0x, or 5-yr average level, at its stronger long-term growth outlook, as the company has shifted focus to high-margin pet food business. We also see no negative impact on the electronic components and auto sectors, as none of their export products are under the GSP suspension.
Asia Plus Securities gave a “Neutral” rating on TU with a fair value of ฿23.00/share.