Kaohoon Online has selected stocks with a high-growth potential for investors to consider on December 6, 2023.
Maybank Securities (Thailand) (MST) has given a “BUY” recommendation on PTT Public Company Limited (SET: PTT) with a target price at ฿42.00/share.
MST anticipated that core earnings for 2024-25F will experience an average growth of 8%, propelled by increased profitability in the gas business due to the positive impact of lower gas prices and the profit expansion of subsidiaries.
Additionally, the current price level provides a substantial dividend yield ranging from 5.3% to 6.2% between 2023-25F, serving as a factor that helps mitigate potential downsides.
PTT is currently traded at a PBV (Price-to-Book Value) of 0.91x, which is lower than PTTEP at 1.12x and Discount at 0.21x. This level is considered below the 10-year average of PTT trading at a PBV Premium 0.11x higher than PTTEP. This valuation suggests that PTT is attractively priced, presenting a significant opportunity for investment given its favorable position.
KGI Securities (KGI) has given an “Outperform” rating on Bangkok Bank Public Company Limited (SET: BBL) with a target price at ฿200.00/share.
KGI stated that BBL’s outlook remains prudent whatever the economic conditions are in 2024. The bank’s 2023F credit cost of 130bps, which is 2.0x higher than normalized credit cost, will help it balance 2024 earnings if economic conditions are not favorable. As ROE should remain high and with a dividend yield of 4%, PBV valuation at 0.65x will limit downside risk. BBL remains KGI’s top pick in 2024.
