In today’s briefing:
- True/DTAC: NBTC Sees Merger Crimping GDP Growth
- PRM : Earnings Growth Remain Dull
- KTB: Limited Upside Gain Potential
- PTG : Improving Sales & Marketing Margin
True/DTAC: NBTC Sees Merger Crimping GDP Growth
- According to the National Broadcasting and Telecommunications Commission, the merger of True (TRUE TB) and Total Access Communication (DTAC TB) could reduce Thailand’s GDP growth by between 0.05% and 1.99%.
- That figure is dependent on the level of collusion after the merger takes place.
- The study faced pushback due to a lack of data from other competing telco companies, and over-the-top players.
PRM : Earnings Growth Remain Dull
- Maintain HOLD recommendation for PRM with a target price at Bt6.30.We foresee limited room for the company’s earnings growth in the next 2-3years as a result from lack of concrete
- 2H22 expansion plan remains intact:TM’s second VLCC will go on-hire on 6th June 22 with a size of 280,000 DWT under 10 years,T/C contract with Thai Oil Group (BUY: Bt71.0)
- Overall revenue from three VLCCS and 13 unit of crew boats won’t be sufficient to offset the impact from rising global crude oil price, which trimmed down FSU demand
KTB: Limited Upside Gain Potential
- Downgrade to HOLD (from BUY) with a target price of Bt16.70. Our downgrade reflects limited upside gain as a rise in share price is largely priced strong 1Q22 performance
- Quarterly earnings passed the peak level in 1Q22:Like other banks, KTB’s fundamentals have improved from the economic reopening and its resilient asset quality.
- Positive sentiments from digital lottery ticket sales The Government Lottery Office (GLO) mentioned that more than 5m lottery tickets were sold through KTB’s Paotang G-wallet app.
PTG : Improving Sales & Marketing Margin
- The 2Q-2H22 outlook looks promising, thanks to solid oil sales volume growth owing to economic recovery from COVID grip and revamping tourism activities. The improving oil marketing margin
- Recovering MM should drive 2Q22 earnings : We expect the 2Q22 earnings to improve QoQ on the back of better sales volume and marketing margin.
- The oil marketing margin should pick up to Bt1.7/liter in 2Q22(+3% QoQ)and remain at 1.7-to-1.8/Liter range in 2H22.From management guidance, the oil sales volume inched up 5% MoM and YoY
Before it’s here, it’s on Smartkarma
