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

Pi Research

Thai Equity - Bottom-up - Equities

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Equity Bottom-Up

Last week analyst meeting came out in a neutral tome. We maintain the BUY recommendation with a 2020E target price of Bt97 (WACC 10% and TG 2%),  implying 15.3x PE’20.The story:<ul>
<li>Expect 2Q20 earnings to be pressured by weak sales volume (-4% QoQ) and lower selling price as Dubai crude price averaged at US$27/BBL in April compared to US$50/BBL in 1Q20.</li>
<li>The negative earnings outlook could pressure the stock price in short term. However, easing the global lockdown measures and OPEC+ crude oil production cut effective from May would gradually drive the oil price up and a recovery is expected by 3Q20.</li>
</ul>

Last week analyst meeting came out in a neutral tome. We maintain the BUY recommendation with a 2020E target price of Bt97 (WACC 10% and TG 2%),  implying 15.3x PE’20.The story:
Expect 2Q20 earnings to be pressured by weak sales volume (-4% QoQ) and lower selling price as Dubai crude price averaged at US$27/BBL in April compared to US$50/BBL in 1Q20.
The negative earnings outlook could pressure the stock price in short term. However, easing the global lockdown measures and OPEC+ crude oil production cut effective from May would gradually drive the oil price up and a recovery is expected by 3Q20.


PTTEP: Possible Earnings Recovery by 3Q20

PTT E&P

PTTEP: Possible Earnings Recovery by 3Q20