Stocks in Focus on August 4, 2020: BJCHI and GPSC
Stocks in Focus on August 4, 2020: BJCHI (Maybank Kim Eng TP at ฿2.30/share) and GPSC (KGI Securities TP at ฿81.00/share).
Stocks in Focus on August 4, 2020: BJCHI (Maybank Kim Eng TP at ฿2.30/share) and GPSC (KGI Securities TP at ฿81.00/share).
4 ส.ค. 2563

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on August 4, 2020.
 
Maybank Kim Eng has given a “BUY” recommendation on BJC Heavy Industries Public Company Limited (BJCHI) with a target price at ฿2.30/share
Maybank expected BJCHI to post a loss of THB80m for 2Q20 results due to FX loss of THB95m while normalized profit is only THB15m. The Covid-19 outbreak has partially affected its revenue recognition. Currently, its backlog is THB4.2b, the highest in 5 years. For future projects, it is in negotiation with a high chance to gain several ones.
Maybank expected 2H20 earnings to improve. BJCHI has a strong financial status, no debt while having high cash on hand with a good dividend yield of 5.2%. T-BUY on weakness as 2Q20 may turn to loss.
 
 
KGI Securities has upgraded Global Power Synergy Public Company Limited (GPSC) from “Neutral” to “Outperform” with a target price at ฿81.00/share.
KGI expected GPSC to report a 2Q20F core profit of Bt2.0bn (+64.1% YoY, -0.4% QoQ). The improvement YoY would be due to 100% consolidation of GLOW. The flat QoQ would be due to a slight decline in IU demand, especially in the automotive sector (2% revenue exposure for GPSC) offsetting the decline in SPP gas cost (-1% QoQ) and less loss contribution from XPCL. For non-operating items, KGI forecasted unrealized FX gain of Bt280mn and GLOW amortization expense of Bt350mn, leading to a net profit of Bt1.9bn (+75.6% YoY, +20.2% QoQ).
The company’s 1H20F core earnings should account for 54.9% of KGI’s revised full-year forecast. KGI upgraded the core earnings forecasts by 10.0% in 2020 and 17.8% in 2021, expecting a low SPP gas cost.
 