Kaohoon Online has selected stocks with a high-growth potential for investors to consider on February 27, 2023.
KGI Securities (KGI) has given an “Outperform” rating on Esso (Thailand) Public Company Limited (SET: ESSO) with a target price at ฿11.40/share.
ESSO reported a 4Q22 net loss of Bt1.6bn (declining from a net profit of Bt750mn in 4Q21 but recovering from a net loss of Bt3.1bn in 3Q22). The result beat KGI’s forecast with a difference of around Bt480mn thanks to better-than-expected accounting GRM of –US$1.5/bbl (vs. KGI’s assumption of –US$2.6/bbl), given lower-than-anticipated stock loss. KGI reiterated a rating of Outperform on ESSO with an unchanged 2023 target price of Bt11.40, based on 5.5x EV/EBITDA. The analyst believed the share price will be supported by the better earnings performance QoQ in 4Q22. Despite the overhang to ESSO’s share price until 2H23, KGI saw limited downside risk in the share price given Bangchak Corporation (BCP.BK/BCP TB)’s* preliminarily illustrative purchase price of ESSO at Bt8.84-9.63/sh) and attractive dividend yields of 14.0% in 2022F, 9.7% in 2023F and 8.6% in 2024F at the current share price.
Maybank Securities (Thailand) (MST) has given a “BUY” recommendation on Thai Union Group Public Company Limited (SET: TU) with a target price at ฿21.80/share.
MST expected TU’s sales in 2023 to increase 5-6% as net profit margin would inch higher to 18-18.5% from 17.5% in 2022, supported by processed seafood and PetCare business. Its frozen seafood will return to normal level, while Red Lobster will see lower net loss. Cost of freight will slow down, while handing out 5-6% dividend yields.
