Kaohoon Online has selected stocks with a high-growth potential for investors to consider on August 29, 2023.
Maybank Securities (Thailand) 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 it sees a bullish oil price outlook (USD90/bbl in 2H23E) coupled with strong production growth (11.5% 2-year CAGR) as key drivers of the share price. MST was bullish on the oil price outlook and added that the stock is attractively valued at 9x P/E 2023-24E (vs 11x average) with 6% dividend yields.
Maybank Securities (Thailand) has given a “BUY” recommendation on Krungthai Bank Public Company Limited (SET: KTB) with a target price at ฿22.00/share.
MST stated that it had low concerns about its asset quality given the high NPL coverage and low- risk loan portfolio (40% of total loans are low-risk government loans and loans to state employees). Key risks are weaker-than-expected asset quality and slow NIM improvement due to an increase in cost of funds. MST noted that its sensitivity analysis shows that every 5bps decline in NIM would impact earnings by -3.7% in FY23E.
MST maintained BUY and TP of THB22 (0.76x FY23E P/BV, 9.1% ROE) and expected the higher loan yield and NIM to support earnings growth in 2H23.
