Kaohoon Online has selected stocks with a high-growth potential for investors to consider on February 20, 2023.
Maybank Securities (Thailand) (MST) has given a “BUY” recommendation on Bangkok Bank Public Company Limited (SET: BBL) with a target price at ฿190.00/share.
MST stated that it was upbeat on BBL, expecting strong growth in corporate and international loans, higher NIM and lower credit cost in FY23E. Among big banks, MST saw BBL as best placed to report positive earnings surprises (if it achieves lower credit cost as it guides for FY23E).
MST noted that it was comfortable with its asset quality given high NPL coverage of 261% in FY22. Raising FY23-24E earnings by 6% for each year to reflect a higher NIM forecast. BUY and raise TP to THB190 (0.7x FY23E P/BV, 8.2% ROE) from THB180.
KGI Securities (KGI) has given an “Outperform” rating on Heng Leasing and Capital Public Company Limited (SET: HENG) with a target price at ฿2.24/share.
HENG reported strong 4Q22 earnings of Bt208mn (+113% QoQ, +58% YoY). The result was 12% above the market consensus. Improvement QoQ and YoY came from the reversal of provisioning expenses, loan growth and yield improvement. The company was able to manage its asset quality and maintain the NPL ratio QoQ.
KGI revised up its earnings forecasts by 31%/29% for 2023F/2024F backed by lowering credit costs and improving yield. After the earnings revision, KGI’s 2023 target price is Bt2.24 (PE 16x), up from Bt1.80.
