Maybank Gives EA a Target Price at ฿52.80 (T-Buy), New E-Boat Accounts 1-2% of Profit
Maybank recommends T-Buy EA, giving a 12 months target price at ฿52.80/share while forecasts that the new ferry service will affect the overall profit by 1-2%. 
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Maybank Kim Eng Securities has made an analysis of Energy Absolute Public Company Limited (EA) after the company announced its new project on last Wednesday. Maybank recommends “Trading Buy”, giving a 12 months target price at ฿52.80/share based on 0.9x PEG.
 
The boat service in the Chao Phraya River is forecast to affect the overall profit by 1-2%, this project has opened up future opportunities to its battery factories currently under construction. However, while waiting for developments of its 3-4 projects, namely, electric car MINE, PCM project and Battery Phase 1 project that will start generating revenue by the end of this year or in 2020, the quarterly normalized profit remains strong at 30-50% YoY.
Maybank expects that EA’s earnings continue to expand YoY due to the final lot of 260MW wind power plants gradually COD in 1H19.
 
On the other hand, there are some risks to consider. EA’s valuation based on the current business is already tight on the P/E19F of 30x. Therefore, if the four projects cannot accelerate the profit to grow in 2020, it will result in stock price trading on a significantly high level versus. EPS growth of 1%.