Thai Equity - Bottom-up - Equities, Pi Securities PCL, Thailand

Pi Research

Thai Equity - Bottom-up - Equities

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Pi Securities PCL, Thailand

Pi Securities is a well known securities company with 40 years experience in the industry, serving more than 60,000 clients. We offer one - stop service providing full range of financial products and services including extensive Brokerage, Proprietary Trading (Equities and Bonds), Advisory Services, Structured Products.

Moreover, our new research team tailored for institutional clients to focus on mid to small cap of Thai equities and trading strategies. Our services offered to our premium clients also include arrangement of company or site visits to with the managements of Thai listed companies.

Note: Effective on 1 March 2022, Country Group Securities PCL changed its name to Pi Securities

Equity Bottom-Up

<ul>
<li>We reiterate the BUY call with a TP of Bt42.0. We like BCP for its well diversified business portfolio including E&amp;P, refinery, marketing, power etc. supporting relatively stable earnings.</li>
<li>Exceptional GRM spike drove 2Q22 profit Excluding the stock gain of Bt3.9bn and other onetime items the recurring EBITDA stood at Bt8.7bn (+190% YoY, +14% QoQ).</li>
<li>The refinery margin (GRM) spiked to US$24.42/bbl.,compared to US$6.8/bbl.in 1Q22 and US$4.2/bbl. in 2Q21, on the back of rise in all product spreads due to supply tightness from Ukraine-Russia conflict.</li>
</ul>


We reiterate the BUY call with a TP of Bt42.0. We like BCP for its well diversified business portfolio including E&amp;P, refinery, marketing, power etc. supporting relatively stable earnings.
Exceptional GRM spike drove 2Q22 profit Excluding the stock gain of Bt3.9bn and other onetime items the recurring EBITDA stood at Bt8.7bn (+190% YoY, +14% QoQ).
The refinery margin (GRM) spiked to US$24.42/bbl.,compared to US$6.8/bbl.in 1Q22 and US$4.2/bbl. in 2Q21, on the back of rise in all product spreads due to supply tightness from Ukraine-Russia conflict.


BCP : Attractive Dividend Yield and Cheap Valuation

<ul>
<li>We reiterate the BUY call on BCP with a TP of Bt42.0. The 2Q22 net profit is expected to surge +198% YoY and +21% QoQ to Bt5.3bn. The significant YoY </li>
<li>Solid refinery performance to drive 2Q22 profit We expect BCP to post a 2Q22 net profit of Bt5.3bn (+198% YoY, +21% QoQ), a new quarterly high. </li>
<li>The refinery margin (GRM) should spike to US$24/bbl (+471% YoY, +251% QoQ), backed by the strong rise in product spreads due to demand surge and Ukraine-Russia war tensions. </li>
</ul>


We reiterate the BUY call on BCP with a TP of Bt42.0. The 2Q22 net profit is expected to surge +198% YoY and +21% QoQ to Bt5.3bn. The significant YoY 
Solid refinery performance to drive 2Q22 profit We expect BCP to post a 2Q22 net profit of Bt5.3bn (+198% YoY, +21% QoQ), a new quarterly high. 
The refinery margin (GRM) should spike to US$24/bbl (+471% YoY, +251% QoQ), backed by the strong rise in product spreads due to demand surge and Ukraine-Russia war tensions. 


BCP : Solid Refinery Performance to Drive 2Q22 Profit

<ul>
<li>The analyst meeting came out in a positive tone. We maintain the BUY call based on a target price of Bt42.0, derived using SOTP methodology, implying 1.1xPBV’23E.</li>
<li>Expect the 2Q22 recurring profit to improve both YoY and QoQ on the back of solid refinery and E&amp;P business operations.</li>
<li>The bright refinery performance should continue to excel in 2Q22 underpinned by higher GRM and full refinery utilization.</li>
</ul>


The analyst meeting came out in a positive tone. We maintain the BUY call based on a target price of Bt42.0, derived using SOTP methodology, implying 1.1xPBV’23E.
Expect the 2Q22 recurring profit to improve both YoY and QoQ on the back of solid refinery and E&amp;P business operations.
The bright refinery performance should continue to excel in 2Q22 underpinned by higher GRM and full refinery utilization.


BCP: Solid Refinery, E&P Performance to Drive 2Q22-2022 Earnings

<ul>
<li>BCP reported 1Q22 net profit of Bt4.4bn (+91% YoY, +148% QoQ), an all time high. The result came out better than our expectation.</li>
<li>The earnings spike was mainly supported by improved performance of 1) refinery operations along with a huge stock gain of Bt4.1bn, 2) natural resources business from rise in crude oil </li>
<li>We expect 2Q22 recurring profit continue to grow from better refinery performance backed by rising GRM. The oil retail business should also improve as marketing margin picks up after easing </li>
</ul>


BCP reported 1Q22 net profit of Bt4.4bn (+91% YoY, +148% QoQ), an all time high. The result came out better than our expectation.
The earnings spike was mainly supported by improved performance of 1) refinery operations along with a huge stock gain of Bt4.1bn, 2) natural resources business from rise in crude oil 
We expect 2Q22 recurring profit continue to grow from better refinery performance backed by rising GRM. The oil retail business should also improve as marketing margin picks up after easing 


BCP: Solid Refinery Performance Drove 1Q22 Profit to All Time High

<ul>
<li>Analyst meeting came out in a positive tone. We maintain the BUY recommendation with a target price of Bt35.0, derived using SOTP method, implying 1.1x PBV’22E. Our valuation reflects positive </li>
<li>Expect 4Q21 recurring profit to improve both YoY and QoQ on the back of solid refinery operations.</li>
<li>We see bright refinery outlook 4Q21 onwards driven by rising GRM (better gasoline, jet and diesel spreads) and higher refinery run rate. While earnings from power,marketing and bio-based business segments</li>
</ul>


Analyst meeting came out in a positive tone. We maintain the BUY recommendation with a target price of Bt35.0, derived using SOTP method, implying 1.1x PBV’22E. Our valuation reflects positive 
Expect 4Q21 recurring profit to improve both YoY and QoQ on the back of solid refinery operations.
We see bright refinery outlook 4Q21 onwards driven by rising GRM (better gasoline, jet and diesel spreads) and higher refinery run rate. While earnings from power,marketing and bio-based business segments


BCP: Bright Refinery Outlook 4Q21 Onwards

Thailand

Bangchak Corporation Public Company Limited operates as an energy company. The Company offers petroleum exploration and production, biomass, crude oil, and solar energy. Bangchak markets its products in Thailand.

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Bangchak Corporation (BCP TB)

BCP : Attractive Dividend Yield and Cheap Valuation

We reiterate the BUY call with a TP of Bt42.0. We like BCP for its well diversified business portfolio including E&P, refinery, marketing, power...

Pi Securities PCL, Thailand

BCP : Solid Refinery Performance to Drive 2Q22 Profit

We reiterate the BUY call on BCP with a TP of Bt42.0. The 2Q22 net profit is expected to surge +198% YoY and +21% QoQ to Bt5.3bn. The significant...

Pi Securities PCL, Thailand

BCP: Solid Refinery, E&P Performance to Drive 2Q22-2022 Earnings

The analyst meeting came out in a positive tone. We maintain the BUY call based on a target price of Bt42.0, derived using SOTP methodology,...

Pi Securities PCL, Thailand

BCP: Solid Refinery Performance Drove 1Q22 Profit to All Time High

BCP reported 1Q22 net profit of Bt4.4bn (+91% YoY, +148% QoQ), an all time high. The result came out better than our expectation.

Pi Securities PCL, Thailand

BCP: Bright Refinery Outlook 4Q21 Onwards

Analyst meeting came out in a positive tone. We maintain the BUY recommendation with a target price of Bt35.0, derived using SOTP method, implying...

Pi Securities PCL, Thailand

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