Stocks in Focus on January 2, 2020: AP and BCP
Stocks in Focus on January 2, 2020: AP (Asia Wealth Securities TP at ฿8.20/share) and BCP (KTB Securities (Thailand) TP at ฿30.00/share).
Stocks in Focus on January 2, 2020: AP (Asia Wealth Securities TP at ฿8.20/share) and BCP (KTB Securities (Thailand) TP at ฿30.00/share).
3 ม.ค. 2563

Kaohoon Online has selected stocks with a potential of high growth for investors to consider on January 1, 2020.
 
Asia Wealth Securities (AWS) has given a “BUY” recommendation on AP (Thailand) Public Company Limited (AP) with a target price at ฿8.20/share.
AWS states that consumers relax their concerns on land taxes that will come effective in 2020 after the government has released details. The said release helps improve the momentum of buying and transferring condominiums.
AP has benefitted from government promotion measures including fee reduction and Ban Dee Mee Down. The company has projects that meet the above criteria in high proportion especially projects under Bt3mn accounting for 50% of the total development project value of Bt50bn.
The 4Q19 performance is expected to be the most outstanding in 2019 due to the transfer of 2 new projects including Life 1 Wireless and Life Sukhumvit of which 40%-50% are expected to be transferred from the total project value of Bt10bn. AP has a high dividend rate which is expected to pay dividends in 2020 at 5.2%
 
KTB Securities (Thailand) (KTBST) has given a “BUY” recommendation on Bangchak Corporation Public Company Limited (BCP) with a target price at ฿30.00/share.
KTBST recommends BCP as the company is a prime beneficiary of IMO regulations on low sulfur oxide emission, effective from 2020 onwards. KTBST forecasts 4Q19E net profit of Bt700-800mn, which would recover from a net loss of Bt2.41bn in 4Q18 and skyrocket by &gt;100% QoQ, on the back of its strong performance across all four businesses.
BCP’s share price has outperformed the SET Index by 12% in a month, which we believe was due primarily to an easing of US-China trade relations and an increase in LSFO price. We see upside to our forecast should ships comply with the new IMO rules on reducing sulfur dioxide emissions and domestic crude palm oil price remain at a high level in expectation of drought condition, which looks likely to lengthen in 2020. Additionally, the stock’s valuation remains attractive, trading at PBV of 0.8x, which is well below its 10-yr average level of 0.95x.
 