Kaohoon Online has selected stocks with a high-growth potential for investors to consider on February 12, 2024.
Maybank Securities (Thailand) (MST) has given a “BUY” recommendation on Bangchak Corporation Public Company Limited (SET: BCP) with a target price at ฿59.00/share.
MST stated that refining margin during 1Q24 shows a clear trend of recovery, averaging 8.05 USD YTD, marking a 47%QoQ increase and is anticipated to remain stable at a high level. This trend is attributed to the tensions in the Red Sea impacting Russian supply transport, ongoing export restrictions, cold weather in the United States, and the Saudi OSP price reduction effective February 2024.
The refinery group presents a positive outlook. BCP stands out for three reasons: 1) it maintains a competitive edge over rivals in refining margins; 2) it stands to gain increased profits from the BSRC acquisition, potentially surpassing MST’s estimates due to synergy.
Valuation appears cheap, trading at a PER of 5.5 times for 24E and an expected dividend yield of 6.5% per year for 24E.
Maybank Securities (Thailand) (MST) has given a “BUY” recommendation on True Corporation Public Company Limited (SET: TRUE) with a target price at ฿7.50/share.
MST expected a 4Q23E core loss of 1.7 billion baht, down from the 3Q23 loss of 1.9 billion baht, attributed to increased income and a reduced proportion of selling and administrative expenses to sales. Consequently, the expected net loss for 2023 is 7.6 billion baht.
Anticipate a reduction in losses to 2.6 billion baht in 2024 due to the synergy between TRUE + DTAC beginning to yield results, coupled with less intense competition in the industry, which supports an increase in ARPU.