Independent Insight Provider

Hao Wang, CFA

Equity Capital Markets

Star Petroleum Refining / Equity Capital Markets

Ke Yan's<a href="http://www.smartkarma.com/insights/sprc-ipo-cash-out-by-ptt-limited-growth-should-you-be-in" target="_blank"> recent nice piece on SPRC's IPO </a>highlighted that this deal may not suit long term investors. In this quick note however I would like to recommend a short term trade here: Long SPRC (Start Petroleum) and short TOP (Thai Oil) on two things: relative valuation gap and stronger momentum for SPRC in short term thanks to its higher gasoline exposure.

Ke Yan's recent nice piece on SPRC's IPO highlighted that this deal may not suit long term investors. In this quick note however I would like to recommend a short term trade here: Long SPRC (Start Petroleum) and short TOP (Thai Oil) on two things: relative valuation gap and stronger momentum for SPRC in short term thanks to its higher gasoline exposure. 

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Star Petroleum Refining PCL, a Thailand based refinery JV between PTT and Chevron, recently launched its&nbsp;IPO, in&nbsp;which PTT is seeking to entirely exits its stake.<ul><li>In this insight, we compare the company to its closest peers and highlight the key considerations likely to impact the deal</li><li>We also run the deal through&nbsp;our Smartkarma IPO framework, which rates it below our cut-off&nbsp;for participation</li><li>From valuation perspective, the deal however appears to offer discount to its listed peers</li><li>Question is - when PTT is cashing out, should you be in?&nbsp;</li></ul>More fold below...

Star Petroleum Refining PCL, a Thailand based refinery JV between PTT and Chevron, recently launched its&nbsp;IPO, in&nbsp;which PTT is seeking to entirely exits its stake.In this insight, we compare the company to its closest peers and highlight the key considerations likely to impact the dealWe also run the deal through&nbsp;our Smartkarma IPO framework, which rates it below our cut-off&nbsp;for participationFrom valuation perspective, the deal however appears to offer discount to its listed peersQuestion is - when PTT is cashing out, should you be in?&nbsp;More fold below...

SPRC IPO: Cash Out by PTT. Limited Growth. Should You Be In?

Thailand

Banpu Public Company Limited mines for coal and other minerals. The Company produces thermal coal and coking coal, and have expertise in open-pit and underground coal mining operations, as well as coal-fired power generation.  Banpu PCL has business bases in Thailand, Laos, Indonesia, China, Australia and Mongolia.

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.

Esso Thailand PCL is a fully integrated oil business, including oil refinery and production. The Company provides liquefied petroleum gas (LPG), gasoline, aviation fuel, diesel, marine fuel, lubricants, aromatic products and other related products such as purified terephthalic acid (PTA), solvents, plasticizers, and benzene concentrate stream.

IRPC PCL produces a variety of petrochemical products including polypropylene, high density polyethylene and expandable polystyrene primarily used in packaging materials. Through its subsidiaries, the Company produces and distributes gasoline, liquefied petroleumgas (LPG), asphalt, as well as electricity and construction materials.

Energy Absolute Public Company Limited engages in the research, development, and production of biodiesel products in Thailand.

Prima Marine Public Company Limited operates as a marine vessel management firm. The Company offers oil-tanker, crude oil, liquefied petrochemicals, and petroleum products transportation services. Prima Marine also provides shipbuilding, shipping, and storage services. Prima Marine serves customers in the Asia Pacific region.

Siamgas & Petrochemicals PCL distributes liquefied petroleum gas (LPG). The Company provides LPG, ammonia and other related petrochemical products such as propane, butane and propellant. Siamgas is also involved in the logistics services for LPG and petrochemical products.

The Lanna Resources Public Company Limited mines and distributes lignite and granite products in Thailand.  The Company produces two types of granite products, polished granite slab and granite block.  Its lignite is supplied to power generation, cement, paper, and food industries.  Additionally, Lanna imports coal for domestic distribution.

SUSCO Pcl distributes petroleum products including unleaded and regular gasoline and diesel oil through its gasoline filling stations and directly to large end-users.  Through its subsidiaries, the Company acts as an oil agent and offers marine freight transportation services.

Asian Insulators Public Company Limited manufactures electrical porcelain insulators for use in low, medium and high voltage applications such as underground power lines, overhead power lines, and power distribution systems and sub-stations.

Shanxi Meijin Energy Co., Ltd. produces coal and related products.

Shanxi Meijin Energy Co, Ltd. (000723 CH)

New Hope Corporation Limited is a thermal coal production company based in Australia. The Company also has interests in logistics and infrastructure operations in Australia as well.

Kosmos Energy Ltd. provides oil and gas exploration and production services. The Company focuses on discovering new petroleum systems and to grow and mature discovered hydrocarbon basins, as well as development and production projects. Kosmos Energy serves customers worldwide.

Peabody Energy Corporation mines and markets low sulfur coal, primarily for use by electric utilities. The Company also trades coal and emission allowances. Peabody owns and operates mines in Arizona, Colorado, New Mexico and Wyoming, Illinois, Indiana, and Australia.

Paladin Energy Ltd operates as a mining company. The Company explores and mines uranium. Paladin Energy serves customers worldwide.

Pingdingshan Tianan Coal Mining Co., Ltd. operates underground coal mining, coal washing and processing. The company also provides ground transportation services.

Jizhong Energy Resources Co., Ltd. produces and markets coal products, generates electric power, and manufactures cement.

CVR Energy, Inc. is an independent refiner and marketer of transportation fuels. The Company, also through a limited partnership produces ammonia and urea ammonia nitrate, or UAN, fertilizers.

Gulfport Energy Corporation operates as an energy exploration and production company. The Company focuses on oil and natural gas exploration and production services. Gulfport Energy serves clients in the United States.

PT Golden Energy Mines Tbk, (GEMS) operates as a holding company. Through its  s ubsidiaries, the Company mines for coal. GEMS' supplies paper mills and export energy markets including China, India, Thailand, Vietnam, and Bangladesh.

Thai Oil Public Company Limited is an oil refinery company. The Company imports crude oil and refines it into gasoline.  It also produces oil related products including liquefied petroleum gas (LPG), kerosene, fuel oil and chemicals. Thai oil supplies its products to domestic market where its major customers include Shell, Caltex Oil and the Petroleum Authority of Thailand.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Thai Oil Pcl (TOP TB)

SPRC/TOP Relative Value Trade

Ke Yan's recent nice piece on SPRC's IPO highlighted that this deal may not suit long term investors. In this quick note however I would like to...

Hao Wang, CFA

SPRC IPO: Cash Out by PTT. Limited Growth. Should You Be In?

Star Petroleum Refining PCL, a Thailand based refinery JV between PTT and Chevron, recently launched its IPO, in which PTT is seeking to entirely...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)