Stocks in Focus on March 9, 2020: STEC and EGCO
Stocks in Focus on March 9, 2020: STEC (Maybank Kim Eng TP at ฿20.00/share) and EGCO (KGI Securities TP at ฿370.00/share).
Stocks in Focus on March 9, 2020: STEC (Maybank Kim Eng TP at ฿20.00/share) and EGCO (KGI Securities TP at ฿370.00/share).
9 มี.ค. 2563

Kaohoon Online has selected stocks with a potential of high growth for investors to consider on March 9, 2020.
 
Maybank Kim Eng has given a “BUY” recommendation on Sino-Thai Engineering and Construction Public Company Limited (STEC) with a target price at ฿20.00/share.
Maybank states that with a high backlog of THB91b, the revenue recognition this year should continue expanding 12%. Normalised profit this year is forecast at THB1.278b, +6.5%. It benefits from the government’s budget disbursement for several projects and from lower energy costs. The stock is trading at low 1.5x PBV, lower than 10-year forward PBV-2SD at 1.55x. This makes it more attractive for investment.
 
KGI Securities has given an “Outperform” rating on EGCO Public Company Limited (EGCO) with a target price at ฿370.00/share.
In the conference meeting with EGCO, the management is confident on its Paju Operation (based load) which might not be significantly hit by the COVID-19 outbreak in South Korea. Meanwhile, the impact from drought is also insignificant, as the IPP power plants utilize seawater (BLCP, KN-4) and GPG has sufficient internal reservoir. For the company’s overseas operations, NT2 still has a higher water level than in 2019.
KGI maintains a rating of Outperform with a 2020 target price of Bt370 based on DCF. EGCO is KGI’s top pick for conventional power plants given its strong balance with cash on hand of Bt20.5bn which could provide further upside. Management set a 2020 CAPEX of Bt30bn for projects in the pipeline and M&amp;A.
 