Stocks in Focus on June 17, 2022: ERW and MEGA

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on June 17, 2022.


Maybank Securities (MST) has given a “BUY” recommendation on The Erawan Group Public Company Limited (SET: ERW) with a target price at ฿4.00/share.

MST stated that the Ministry of Finance is considering offering corporate tax incentives for companies to bring their employees to travel around the country. The travel expenses should be tax deductible. MST believed this should benefit ERW who earn about 10% of their normalised revenues from the Hop Inn budget hotels. There are about 50 Hop Inn hotels around the country, mostly in the second tier cities. 


Finansia Syrus Securities (FSS) has given a “BUY” recommendation on Mega Lifesciences Public Company Limited (SET: MEGA) with a target price at ฿67.00/share.

FSS stated that the business related to medicine and vitamin products that is considered essential products has been pressured by rising inflation. Sales volume in April to May was positive, which was close to 1Q22 performance. Weak Thai baht also boosted the results this quarter.

FSS expected 2022 earnings to grow 21%, adding that the company has a low IBD/E at 0.02x with limited impact from policy rate hike.