Kaohoon Online has selected stocks with a high-growth potential for investors to consider on June 27, 2024
Maybank Securities (Thailand) (MST) has given a “BUY” recommendation on Bumrungrad Hospital Public Company Limited (SET: BH) with a target price at ฿310.00/share.
MST saw higher prices for BH with rising international patients and capacity expansion driving 9% EPS CAGR for FY24-26E, outpacing the 1% CAGR in FY17-19.
MST saw street upgrades as a potential near-term catalyst as MST’s forecasts are 5-7% above consensus due to strong pricing power, great cost management, and a potentially strong 2Q24E as Ramadan came early. Downside risks include slower return of Kuwaiti patients, higher competition, and price controls.
Additionally, BH’s current valuation at 24x FY24E P/E is at a 1.4SD discount to its pre-Covid mean of 37.2x (FY14-19).
LH Securities (LH) has given a “BUY” recommendation on Advanced Info Service Public Company Limited (SET: ADVANC) with a target price at ฿250.00/share.
LH is anticipating a 15.2% year-on-year increase in earnings for the second quarter of 2024, but a slight 2.1% decrease quarter-on-quarter. The company is considering setting aside provisions for employees’ bonuses in this quarter following better-than-expected performance, which may lead to a rise in Selling, General, and Administrative (SG&A) expenses in 2Q24.
With LH exceeding expectations in the first half of 2024, the company is poised to positively reassess the earnings and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of ADVANC.
LH foresees a 16% growth in earnings for the full year, potentially reaching a nine-year high. The recent downturn was linked to speculations regarding the impact of the merger with 3BB on the company’s performance in the first half of 2024, giving a 18.5% upside to LH’s target price, with a projected 2.1% dividend yield in the first half, amounting to THB4.50 per share.
