Kaohoon Online has selected stocks with a high-growth potential for investors to consider on May 24, 2024
Maybank Securities (Thailand) (MST) has given a “BUY” recommendation on i-Tail Corporation Public Company Limited (SET: ITC) with a target price at ฿22.20/share.
MST stated that ITC’s operating results in 2Q24 are likely to grow YoY from revenue growth, with the GPM expected to improve due to lower raw material costs and positive results from operating leverage stemming from higher production rates. Depreciation expenses decreased from previous levels after the opening of a new production line was postponed from April to June 2024.
In the short term, MST saw three positive signals that will support stock prices: 1) The direction of the baht against the USD weakened after reporting PMI numbers for the manufacturing sector in May, which were stronger than expected. 2) Pet food exports in April showed positive signs, with an expansion of 53% YoY. 3) MST expectedITC will have an opportunity to be selected for inclusion in the SET50 Index around 2H24.
In terms of valuation, based on BB
Consensus, ITC is trading at a PER24E of 21.2 times, lower than the average of 22.3 times, making the current price level relatively inexpensive.
KGI Securities (KGI) has given an “Outperform” rating on Carabao Group Public Company Limited (SET: CBG) with a target price at ฿84.00/share.
KGI stated that after two straight quarters of recovery, CBG’s earnings momentum seems solid going forward driven by an improving market share in domestic energy drinks, solid export growth from Cambodia and Vietnam, and solid distribution revenue for spirits as its market share improves. The company’s margin is expected to improve slightly on rising CAPU and cost control. KGI revised up its 2024F/2025F earnings forecasts by 8%/6%, and raised 2024 target price to Bt84.00, from Bt78.00, PE 35x.
