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

Pi Research

Thai Equity - Bottom-up - Equities

Leading, full-service investment firm in Thailand

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>PTTEP reported 1Q22 net profit of Bt10.5bn(-9.0%YoY, Flat QoQ).Despite significant growth in sales volume and product selling price, the net profit was dragged by a higher hedging loss of US$240m. </li>
<li>Excluding extraordinary items, the recurring profit stood at Bt18.9bn (+113% YoY, +11% QoQ). YoY surge was underpinned  by a 12% sales volume and 27% average product selling price (ASP) growth.</li>
<li>Positive 2Q22 outlook as we expect the net profit to grow both YoY and QoQ,The gas production commencement from G1/61 and G2/61 projects(Thailand)should aid in a 10% QoQ sales growth. </li>
</ul>


PTTEP reported 1Q22 net profit of Bt10.5bn(-9.0%YoY, Flat QoQ).Despite significant growth in sales volume and product selling price, the net profit was dragged by a higher hedging loss of US$240m. 
Excluding extraordinary items, the recurring profit stood at Bt18.9bn (+113% YoY, +11% QoQ). YoY surge was underpinned  by a 12% sales volume and 27% average product selling price (ASP) growth.
Positive 2Q22 outlook as we expect the net profit to grow both YoY and QoQ,The gas production commencement from G1/61 and G2/61 projects(Thailand)should aid in a 10% QoQ sales growth. 


PTTEP: Hedging Loss Dragged 1Q22 Net Profit

<ul>
<li>We expect PTTEP to post 1Q22 net profit of Bt9.4bn (-18% YoY, -11% QoQ). Despite significant growth in sales volume and product selling price</li>
<li>Excluding the one-time items, the recurring profit is expected to be Bt16.6bn (+228% YoY,-3% QoQ). YoY surge will be underpinned  by a 11% growth in sales volume and a 25% </li>
<li>Bright 2022 outlook from crude oil &amp; gas price surge. We see the volatility to continue considering continued Russia-Ukraine war tensions, Reserve oil release by IEA members and COVID-19 </li>
</ul>


We expect PTTEP to post 1Q22 net profit of Bt9.4bn (-18% YoY, -11% QoQ). Despite significant growth in sales volume and product selling price
Excluding the one-time items, the recurring profit is expected to be Bt16.6bn (+228% YoY,-3% QoQ). YoY surge will be underpinned  by a 11% growth in sales volume and a 25% 
Bright 2022 outlook from crude oil &amp; gas price surge. We see the volatility to continue considering continued Russia-Ukraine war tensions, Reserve oil release by IEA members and COVID-19 


PTTEP: Hedging Loss to Drag 1Q22 Net Profit

<ul>
<li>Last week analyst meeting came out in a positive tone. The improving sales volume and rising oil price should aid the earnings momentum in 1Q22 and ahead.We maintain the BUY</li>
<li>Expect 1Q22 earnings to improve both YoY and QoQ on the back of 1) 4% and 2% QoQ growth in sales volume and ASP, respectively. And 2) No significant impairment</li>
<li>Positive 2022 earnings outlook as the sales volume is expected to increase by +12% YoY to 467kBOED, and ASP by 5% to US$46/BOE.</li>
</ul>


Last week analyst meeting came out in a positive tone. The improving sales volume and rising oil price should aid the earnings momentum in 1Q22 and ahead.We maintain the BUY
Expect 1Q22 earnings to improve both YoY and QoQ on the back of 1) 4% and 2% QoQ growth in sales volume and ASP, respectively. And 2) No significant impairment
Positive 2022 earnings outlook as the sales volume is expected to increase by +12% YoY to 467kBOED, and ASP by 5% to US$46/BOE.


PTTEP: Bright 2022 Outlook from Sales Growth & Rising Oil Price

<ul>
<li>We expect PTTEP to post a solid 4Q21 net profit of Bt9.7bn (+283% YoY, +2% QoQ).</li>
<li>Excluding the impairment loss of US$200m (Mozambique, Yetagun projects), and US$100m gain from reversal of decommissioning expense of Bongkot project, the recurring profit is expected to be Bt13.2bn (+162% YoY)</li>
<li>The YoY surge will be from 10% and 27% growth in sales volume and  average product selling price (ASP) respectively.</li>
</ul>


We expect PTTEP to post a solid 4Q21 net profit of Bt9.7bn (+283% YoY, +2% QoQ).
Excluding the impairment loss of US$200m (Mozambique, Yetagun projects), and US$100m gain from reversal of decommissioning expense of Bongkot project, the recurring profit is expected to be Bt13.2bn (+162% YoY)
The YoY surge will be from 10% and 27% growth in sales volume and  average product selling price (ASP) respectively.


PTTEP: Solid Earnings Performance Hit by Impairment Loss

<ul>
<li>We have a positive view on the 5-year investment plan (2022-26) revealed by PTTEP yesterday. The 5% CAGR sales growth and crude oil price at high levels should support </li>
<li>PTTEP revealed the 5-year investment plan for 2022-26. The total budget is US$27.2bn, a 15% higher than the previous plan (2021-25).</li>
<li>Bulk of the CAPEX is allocated for producing projects. In 2022, the company aims at maintaining the production volume from major projects and startup of some under development projects viz.Bongkot</li>
</ul>


We have a positive view on the 5-year investment plan (2022-26) revealed by PTTEP yesterday. The 5% CAGR sales growth and crude oil price at high levels should support 
PTTEP revealed the 5-year investment plan for 2022-26. The total budget is US$27.2bn, a 15% higher than the previous plan (2021-25).
Bulk of the CAPEX is allocated for producing projects. In 2022, the company aims at maintaining the production volume from major projects and startup of some under development projects viz.Bongkot


PTTEP: Prudent Growth in 2022-26 from 5.0% CAGR Sales

Thailand

PTT Exploration and Production Public Company Limited explores for crude oil and natural gas, develops fields for production, and produces oil and natural gas. The Company is a subsidiary of the Petroleum Authority of Thailand.

PTT Exploration & Production P (PTTEP-R TB)

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PTT Exploration & Production P (PTTEP-R TB)

PTTEP: Hedging Loss Dragged 1Q22 Net Profit

PTTEP reported 1Q22 net profit of Bt10.5bn (-9.0%YoY, Flat QoQ). Despite significant growth in sales volume and product selling price, the net...

Pi Securities PCL, Thailand

PTTEP: Hedging Loss to Drag 1Q22 Net Profit

We expect PTTEP to post 1Q22 net profit of Bt9.4bn (-18% YoY, -11% QoQ). Despite significant growth in sales volume and product selling price, the...

Pi Securities PCL, Thailand

PTTEP: Bright 2022 Outlook from Sales Growth & Rising Oil Price

Last week analyst meeting came out in a positive tone. The improving sales volume and rising oil price should aid the earnings momentum in 1Q22 and...

Pi Securities PCL, Thailand

PTTEP: Solid Earnings Performance Hit by Impairment Loss

We expect PTTEP to post a solid 4Q21 net profit of Bt9.7bn (+283% YoY, +2% QoQ). •Excluding the impairment loss of US$200m (Mozambique, Yetagun...

Pi Securities PCL, Thailand

PTTEP: Prudent Growth in 2022-26 from 5.0% CAGR Sales

We have a positive view on the 5-year investment plan (2022-26) revealed by PTTEP yesterday. The 5% CAGR sales growth and crude oil price at high...

Pi Securities PCL, Thailand

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