Stocks in Focus on February 19, 2020: GFPT and KTC
Stocks in Focus on February 19, 2020: GFPT (KGI Securities TP at ฿16.70/share) and KTC (Maybank Kim Eng TP at ฿49.00/share).
Stocks in Focus on February 19, 2020: GFPT (KGI Securities TP at ฿16.70/share) and KTC (Maybank Kim Eng TP at ฿49.00/share).
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Kaohoon Online has selected stocks with a potential of high growth for investors to consider on February 19, 2020.
 
KGI Securities has given an “Outperform” rating on GFPT Public Company Limited (GFPT) with a target price at ฿16.70/share.
KGI forecasts GFPT to report a 4Q19 core profit of Bt282mn (+20.7% YoY, -27.9% QoQ). The improvement in YoY would be due to the absence of provision for employee benefits related to the Labour Protection Act while the fall QoQ would be from a lower top line.
In this regard, KGI maintains a positive view on Thailand’s broiler exports but GFPT could miss this opportunity due to the fire at its processing plant.
 
Maybank Kim Eng has given a “BUY” recommendation on Krungthai Card Public Company Limited (KTC) with a target price at ฿49.00/share.
Maybank states that it prefers KTC for the solid asset quality and strong earnings growth.  The higher NPL ratio is due to a change in accounting standard, not a weakening asset quality.  KTC should be able to withstand slow economic growth given its strong asset quality.
Thus, Maybank raised FY20-21F EPS by 3-14% to factor in impact from lower provisions from TFRS9 implementation and lower funding cost. Maintain BUY and raised target price to THB49 from THB44 (5.2x FY20E P/BV, 18x P/E and 31% ROE).