Stocks in Focus on October 22, 2019: KBANK and JMT
Stocks in Focus on October 22, 2019: KBANK (KGI Securities TP ฿213.0/share) and JMT (Maybank Kim Eng TP ฿21.60/share).
Stocks in Focus on October 22, 2019: KBANK (KGI Securities TP ฿213.0/share) and JMT (Maybank Kim Eng TP ฿21.60/share).
24 ต.ค. 2562

Kaohoon Online has selected two stocks with a potential of high growth for investors to consider on October 22, 2019.
 
KGI Securities (KGI) rates Kasikornbank Public Company Limited (KBANK) “Outperform” with a target price at ฿213.0/share.
KGI has stated that KBANK had reported 3Q19 earnings of Bt9.9bn (+0.2% QoQ, +2% YoY). The result was around 4% above its forecast and the market consensus due to higher than expected fee income.
Although current economic conditions favor the bank dealing with bad debt, the ability to seek other sources of revenue to offset higher risk cost is not too bad for KBANK in our view. As the bank is in a transition phase for the new accounting standard and improving the economy in 4Q19, KGI thinks the huge excess reserves are enough for the bank to manage asset quality in this economic slowdown cycle.
If the bank is able to maintain its revenue growth, there will be upside potential for next year’s earnings growth. Thus, KGI maintains a rating of Outperform with a target price of Bt213.
May Bank Kim Eng recommends “BUY” JMT Network Services Public Company Limited (JMT) with a target price at ฿21.60/share.
Maybank expects 3Q19 earnings to hit a new record high at THB170m (+13%QoQ,+23%YoY) driven by 1) debt collection business grew +7%QoQ,+3%YoY from huge debt portfolio it acquired in 2Q19, making it the largest portfolio in 7 years, 2) debt management business is forecast to collect cash of THB730m (+3%QoQ,+20%YoY) from existing and new portfolios. The portfolios with capital increased, resulting in GPM up +400bps vs QoQ to 62%, 3)Insurance business is forecast to post less loss QoQ and turned to profit since Aug-Sep.
In addition, Maybank has revised up JMT’s target price from ฿20.80/share to ฿21.60/share.
 