Stocks in Focus on August 3, 2020: WHA and CPN
Stocks in Focus on August 3, 2020: WHA (KTB Securities TP at ฿3.80/share) and CPN (KGI Securities TP at ฿55.50/share).
Stocks in Focus on August 3, 2020: WHA (KTB Securities TP at ฿3.80/share) and CPN (KGI Securities TP at ฿55.50/share).
4 ส.ค. 2563

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on August 3, 2020.
 
KTB Securities (Thailand) (KTBST) has given a “BUY” recommendation on WHA Corporation Public Company Limited (WHA) with a target price at ฿3.80/share.
KTBST forecasted WHA’s 2Q20E net profit to drop -58% YoY but to skyrocket +344% QoQ to Bt440mn. A decline YoY would be due to a reduction in transfers, which was estimated to drop to 120 rais from 480 rais in 2Q19, and lower utilities revenue along with a temporary shutdown of numerous plants due to the COVID-19 outbreak.
A remarkable growth QoQ would contribute to a low base in 1Q19, a period WHO registered transfers of just 65 rais, and equity loss from the power plant business. Thus, KTBST maintained its 2020E core profit forecast at Bt2.73bn, which indicates a decline of -8%, as the security company estimated transfers at 364 rais.
KTBST stated that WHA’s share price gained in three months and thereby outperformed the SET Index by 16%. KTBST expected the government’s economic stimulus package and the improvement in the COVID-19 situation, which would boost land presales in 2H20E, to lend further support to the share price.
 
KGI Securities has given an “Outperform” rating on Central Pattana Public Company Limited (CPN) with a target price at ฿55.50/share.
KGI expected CPN to report a 2Q20F core loss of Bt347mn, down from core profits of Bt2.5bn in 2Q19 and 1Q20, mainly due to temporary closure of shopping centers. In 2H20, KGI expected CPN’s earnings to improve, on the back of higher mall traffic and lower rent discounts. The latest price offers 15.0% upside to our DCF-based target price of Bt55.50. KGI, therefore, upgraded its rating to Outperform, from Neutral.