Thailand

Brief Thailand: PRM: Thai Largest Tanker Fleets Assured of Consistent Growth and more

In this briefing:

  1. PRM: Thai Largest Tanker Fleets Assured of Consistent Growth

1. PRM: Thai Largest Tanker Fleets Assured of Consistent Growth

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We initiate coverage of PRM with a BUY rating, based on a target price of Bt7.70, derived from a PEG ratio of 0.9x, which is the average for the Asia ex-japan transportation sector, implying 22.0x PE’19E.

The story:

  • Secured revenue from domestic trading business
  • IMO 2020 implementation to propel floating storage demand
  • Recovery in T/C rate should prompt international trading turnaround

Risks:  Lower-than-expected domestic oil consumption and trading activities in ASEAN, foreign currency and fuel cost fluctuations

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