Kaohoon Online has selected stocks with a high-growth potential for investors to consider on December 28, 2021.
Maybank Securities (Thailand) (MST) has given a “BUY” recommendation on CH. Karnchang Public Company Limited (SET: CK) with a target price at ฿24.00/share.
MST stated that CK has started bidding for more new works, adding a backlog to 60 billion baht. In the future, it is expected that there will be more construction work, namely the West Orange Line worth 120 billion baht and the South Purple Line worth 78 billion baht, coupled with subsidiaries BEM, CKP, TTW that tend to recover as additional support for CK.
KTBST Securities (KTBST) has given a “BUY” recommendation on JMT Network Services Public Company Limited (SET: JMT) with a target price at ฿80.00/share.
KTBST upgraded JMT’s target price from THB65 to THB80, expecting ROE to grow at a faster rate of 19% from 15% earlier over the next three years, driven by 1) the capital base has increased following the rights offering and exercising of JMT-W3, 2) the company made a JV with KBANK to operate asset management and debt collection businesses, and 3) the financial institutions are expected to increasingly sell their bad assets as special mention loans have increased from 3Q21 and the moratorium program is set to end in December.
KTBST maintained 2021E net profit forecast at 1.37 billion baht, which indicates a +30% increase YoY, but upgrade 2022E forecast by 3% to Bt2.24bn, up +64%, to reflect the company’s plan to buy a greater value of bad debts for management and profit contribution from its JV with KBANK.
JMT has outperformed the SET Index by 11%/53% over the past one/three months. KTBST saw the brighter earnings prospects in 2022E as 1) the company scooped up bad debts while NPLs have increased at a rapid pace, 2) the purchased assets have an average break-even of just 3-5 years compared to 6-8 years in the large asset management company, and 3) the JV with KBANK may boost earnings growth in the next 3-5 years.