Kaohoon Online has selected stocks with a high-growth potential for investors to consider on May 8, 2024
Maybank Securities (Thailand) (MST) has given a “BUY” recommendation on Muangthai Capital Public Company Limited (SET: MTC) with a target price at ฿52.00/share.
MST anticipate that the stock price will respond positively to the outstanding 1Q24 results. The net profit reached 1.39 billion baht, marking a 30% YoY increase and a 3% QoQ improvement, which surpassed both MST’s and the market’s expectations by 6-8%.
The highlight of this period’s performance is weighted towards strong asset quality, as indicated by the NPL ratio decreasing by 9 basis points QoQ to 3.07%. Additionally, the Coverage Ratio increased by 5% QoQ to 121%, and Credit Cost decreased to 3.16% from 4Q23’s 3.67% and 1Q23’s 3.51%.
Loan growth expanded by 18% YoY but remained stable at 1% QoQ. The Net Interest Margin (NIM) stood at 14.4%, showing a slight slowdown from 1Q23’s 14.8% and 4Q23’s 14.7%, resulting in interest income expanding by 15% YoY and 1% QoQ.
Maybank Securities (Thailand) (MST) has given a “BUY” recommendation on Bangkok Bank Public Company Limited (SET: BBL) with a target price at ฿180.00/share.
MST stated that it like BBL for its clear earnings visibility and solid asset quality. BBL focuses on large corporate loans with limited exposure to low-income earners so the bank has good earnings visibility from strong asset quality and high loan-loss reserves.
MST expected credit cost to gradually decline QoQ from 2Q24. Valuation looks attractive as the stock is trading at 6.0x FY24E PER, 0.47x P/BV and 5.5% dividend yield. Key risk is weaker-than-expected asset quality from the global economic slowdown.
