Stocks in Focus on May 20, 2024: KBANK and SCGP

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on May 20, 2024


Maybank Securities Thailand (MST) has given a “BUY” recommendation on Kasikornbank Public Company Limited (SET: KBANK) with a target price at ฿145.00.

MST stated that the strong 1Q24 performance makes the brokerage firm optimistic about the company’s policy focusing on maintaining good loan quality to reduce credit costs in 2024-25. Additionally, MST believes KBANK has the opportunity to increase its Dividend Payout Ratio to support achieving the ROE target of 10% by 2026. This would positively impact higher dividend payments. MST expects the Dividend Yield for 2024/25 to be 5.6%/6% per year, while the valuation is trading at a PBV24E of only -0.54 times.

Over the past 5 business days, MST has observed a positive signal from foreign fund flows, with a net purchase of 5.2 billion baht following better-than-expected 1Q24 profit results of listed companies. KBANK is notably one of the key targets of this fund flow, as evidenced by the largest net purchase in NVDR in the market, amounting to 1.7 billion baht.


KGI Securities (KGI) has given an “Outperform” rating on SCG Packaging Public Company Limited (SET: SCGP) with a target price at ฿39.00/share.

KGI stated that its Outperform call stands with a higher target price of Bt39.00, reflecting its earnings upgrade. SCGP should reflect stronger signs of China’s recovery via an uptrend in earnings, while its 2Q24F earnings outlook should not be a concern for investors as it is the company’s low season. Lastly, KGI saw lower cuts in the street’s 2024-25F earnings forecasts of 9-10% (vs. 10-12% earlier expected), while the share price has fallen 7%. On top of the promising outlook, SCGP would gain positive sentiment paralleling the YTD surge in the share prices of China’s top packaging paper stocks.