In today’s briefing:
- TTW: Bleak 2022 Outlook and Recovery Thereafter
- BCP: Solid Refinery, E&P Performance to Drive 2Q22-2022 Earnings
- GGC: Muted 2H22 Growth Expectations
TTW: Bleak 2022 Outlook and Recovery Thereafter
- We downgrade the rating to HOLD from BUY and revise down the target price by 22% to Bt11.70 due to weak earnings outlook from low tap water demand on account
- 1Q22 net profit dropped to Bt613m (-13% YoY, -1% QoQ), a 4-year low. The result came out lower than our expectation.
- The YoY earnings drop was due to decline in gross margin, higher SG&A to sales and lower share of profit from CKP.Meanwhile, revenue dropped 4% YoY dragged by lower sales
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, implying 1.1xPBV’23E.
- Expect the 2Q22 recurring profit to improve both YoY and QoQ on the back of solid refinery and E&P business operations.
- The bright refinery performance should continue to excel in 2Q22 underpinned by higher GRM and full refinery utilization.
GGC: Muted 2H22 Growth Expectations
- Last week analyst meeting came out in a negative tone.Maintain HOLD rating with a new TP of Bt13.00(down 9% from previous TP) based on 1.27xPBV’22E which is close to ASIA
- We foresee earnings momentum to slowdown QoQ in 2Q22,pressure by change to B5 biodiesel policy,along with seasonality effect will hurt biodiesel demand despite lockdown easing, but should be mildly cushion
- Meanwhile, FA demand in 2Q22 should remain stable backed by growing consumption of personal care products and rising prices for substitute products
Before it’s here, it’s on Smartkarma
