Stocks in Focus on November 1, 2019: TASCO and BDMS
Stocks in Focus on November 1, 2019: TASCO (Asia Wealth Securities TP ฿26.00/share) and BDMS (Maybank Kim Eng TP ฿28.00/share.)
Stocks in Focus on November 1, 2019: TASCO (Asia Wealth Securities TP ฿26.00/share) and BDMS (Maybank Kim Eng TP ฿28.00/share.)
1 พ.ย. 2562

Kaohoon Online has selected stocks with a potential of high growth for investors to consider on November 1, 2019.
 
Asia Wealth Securities (AWS) has given a “BUY” recommendation on Tipco Asphalt Public Company Limited (TIPCO) with a target price at ฿26.00/share.
AWS asserts that the reasons that it recommends buying TASCO are because (1) oil prices revise down benefitting the cost of asphalt production (2) demand for asphalt will increase due to the acceleration of government spending in various countries to stimulate the economy. It is expected that TASCO’s domestic and international sales will improve in 2020 (3) benefits from the IMO2020 measure as refineries will turn to produce lowsulfur oil. Asphalt supply is expected to disappear from the market resulting in the 2020 asphalt price to be at a good level of around Bt14-16 per kilogram (4) expect the FY2020 net profit to grow 17% YoY but operating profit will grow 59% YoY.
AWS expects 2020 to be TASCO’s good year. Recommend BUY with a target price of Bt26.00 based on a 12.5x PER of 2020. TASCO remains very strong in a full uptrend from the occurrence of Daily, Weekly, and Monthly Buy Signal (resistance: 21.40, 21.50, 21.70; support: 21.20, 21.10, 20.90).
 
Maybank Kim Eng (Maybank) has picked Bangkok Dusit Medical Services Public Company Limited (BDMS) with a target price of ฿28.00/share.
Maybank expects core earnings to recover and grow in 2H19 after a 3% fell in 1H19, mainly driven by EBITDA margin expected to improve better. This was due to Q3 is the high season as it was the rainy season. As a result, Phayathai and Paolo hospitals should post higher revenue. The core earnings should become outstanding in 4Q19 due to low profit base last year. In addition, after the convertible bond has been converted to common shares, the interest paid should be partially reduced.
 