BTS Group Holdings
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Excited by growth, held back by valuations Neutral, maintained, Bt0.67; target price Bt0.75
BTS Group Holdings Plc (BTS)
In current economic conditions, it is rare to find a company whose organic topline growth tops 30%. BTS, propelled by its fast-growing mass transit and media businesses, falls in this category. Ridership in August surged to a new high which could soon be overtaken in September. Its media unit is also enjoying strong ad-buyer demand. That said, we estimate that much of its growth potential is in the price, leaving just moderate upside (12%) to our DCF-based target price of THB0.75 (WACC 7.5%). We therefore maintain our Neutral rating.
