Stocks in Focus on January 12, 2023: PTTEP and ITC

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on January 12, 2023.


Maybank Securities (Thailand) (MST) has given a “BUY” recommendation on PTT Exploration and Production Public Company Limited (SET: PTTEP) with a target price at ฿194.00/share.

MST stated that crude oil prices experienced a significant 1.89% surge, driven by escalating tensions in the Middle East, particularly in the Gulf of Oman. The issue stemmed from Iran seizing crude oil tankers en route from Iraq to Turkey, creating a sentiment that supports PTTEP share prices today.

From a fundamental perspective, PTTEP is anticipated to exhibit robust production growth with a 11.5% Compound Annual Growth Rate (CAGR) in 2023-24. This growth surpasses the global oil and gas production growth rate. The increase is attributed to enhanced output resulting from renewed contracts in the Gulf of Thailand, notably in the Erawan gas field.

The stock price is currently trading at a 2024E Price-to-Earnings Ratio (PER) of 7.8 times, compared to an average of 11 times. Additionally, the stock offers a high dividend yield of 6.6%, providing a protective factor to limit downside risk.


KGI Securities (KGI) has given an “Outperform” rating on i-Tail Corporation Public Company Limited (SET: ITC) with a target price at ฿24.00/share.

KGI stated that ITC is expected to report a 4Q23F net profit of Bt784 million (+17% YoY, +22% QoQ). The growth QoQ would be backed by a recovery in sales revenue as large customers in the EU and US began restocking. The decline in tuna price would be another supportive factor as KGI expected GPM to increase 1.8ppts QoQ to 21.0%.

Earnings in 1Q24F are anticipated to drop QoQ due to seasonality. In 2024F, expansion in existing and new customers in the private label segment should be the main growth driver.