Stocks in Focus on February 4, 2022: MCS and BBL

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on February 4, 2022.


Maybank Securities (Thailand) (MST) has given a “BUY” recommendation on M.C.S. Steel Public Company Limited (SET: MCS) with a target price at ฿20.00/share.

MST expected 4Q21 earnings to slow down to THB310m, (-27% QoQ, +39% YoY). For the whole 2021, profit will hit a new record high of THB1.375b, soaring 44%. But in 2022, earnings may decline from lower delivery of structural steel. The current backlog is as high as 90k tonnes. It is likely to gain new projects continuously. In March, management prepared to fly to negotiate another 2 projects, 20-30k tonnes, to add to the backlog to support future revenues. MCS trades at a low P/E with a decent dividend.


Maybank Securities (Thailand) (MST) has given a “BUY” recommendation on Bangkok Bank Public Company Limited (SET: BBL) with a target price at ฿165.00/share.

MST is positive on BBL’s prospects for strong corporate loan growth and lower credit cost in 2022E. BBL should benefit from the strong loan demand related to infrastructure investment and overseas expansion by Thai corporates as it focuses on lending to large corporates and overseas (65% of loans). MST stated that it is comfortable with its asset quality given high NPL coverage of 226% in 2021. MST’s FY22-23E earnings rise by 3-4% to reflect strong NII growth. BUY with a higher TP of THB165 (0.6x FY22E P/BV, 7.7% ROE).