BGRIM : Rising Gas Cost to Drag 3Q22 Earnings

BGRIM : Expect Earnings Rebound in 4Q22 as Gas Price Softens

BGRIM : 2Q22 Will See a Recovery in Core Earnings

BGRIM: Growth Intact from 30% Capacity Expansion in 2022-23

BGRIM: Rising Gas Cost to Drag SPP Margins in 1H22

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

Pi Research

Thai Equity - Bottom-up - Equities

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Pi Securities PCL, Thailand

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Note: Effective on 1 March 2022, Country Group Securities PCL changed its name to Pi Securities

Equity Bottom-Up

<ul>
<li>We maintain the BUY call with a TP of Bt42. The current share price has factored in the weak 2Q22 earnings impacted by high gas cost (+80% YoY). </li>
<li>Core earnings recovery in line with our forecast.BGRIM’s 2Q22 normalized net profit was at Bt147m (-86% YoY, 332% QoQ).The significant QoQ growth was driven by improvement in the SPP margin </li>
<li>However, BGRIM reported their 1st time quarterly loss of -Bt193m in 2Q22caused by unrealized FX loss of Bt541m booked during the period due to Thai baht depreciation against the USD</li>
</ul>


We maintain the BUY call with a TP of Bt42. The current share price has factored in the weak 2Q22 earnings impacted by high gas cost (+80% YoY). 
Core earnings recovery in line with our forecast.BGRIM’s 2Q22 normalized net profit was at Bt147m (-86% YoY, 332% QoQ).The significant QoQ growth was driven by improvement in the SPP margin 
However, BGRIM reported their 1st time quarterly loss of -Bt193m in 2Q22caused by unrealized FX loss of Bt541m booked during the period due to Thai baht depreciation against the USD


B Grimm Power

BGRIM : 2Q22 Core Earnings Recovered QoQ