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

Pi Research

Thai Equity - Bottom-up - Equities

Leading, full-service investment firm in Thailand

Pi Securities PCL, Thailand

Pi Securities is a well known securities company with 40 years experience in the industry, serving more than 60,000 clients. We offer one - stop service providing full range of financial products and services including extensive Brokerage, Proprietary Trading (Equities and Bonds), Advisory Services, Structured Products.

Moreover, our new research team tailored for institutional clients to focus on mid to small cap of Thai equities and trading strategies. Our services offered to our premium clients also include arrangement of company or site visits to with the managements of Thai listed companies.

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

Equity Bottom-Up

Star Petroleum Refining / Equity Bottom-Up

<ul>
<li>We reiterate the BUY call on SPRC with a TP of Bt13.5. The 2Q22 net profit surged 825% YoY and 35% QoQ to Bt7.2bn, marking a new high.</li>
<li>High GRM drove 2Q22 profit Excluding stock gain and other one-time items the recurring EBITDA grew to Bt7.7bn(&gt;1000%YoY,+142%QoQ).The significant earnings growth was driven by spike in gross refinery margin (GRM) </li>
<li>Market GRM surged to US$18.9/bbl. in 2Q22,up from US$2.6/bbl. in 2Q21 and US$8.5/bbl.in 1Q22,on the back of improved product spreads (diesel,gasoline, and jet fuel) due to tight supply from Ukraine-Russia</li>
</ul>


We reiterate the BUY call on SPRC with a TP of Bt13.5. The 2Q22 net profit surged 825% YoY and 35% QoQ to Bt7.2bn, marking a new high.
High GRM drove 2Q22 profit Excluding stock gain and other one-time items the recurring EBITDA grew to Bt7.7bn(&gt;1000%YoY,+142%QoQ).The significant earnings growth was driven by spike in gross refinery margin (GRM) 
Market GRM surged to US$18.9/bbl. in 2Q22,up from US$2.6/bbl. in 2Q21 and US$8.5/bbl.in 1Q22,on the back of improved product spreads (diesel,gasoline, and jet fuel) due to tight supply from Ukraine-Russia


SPRC : GRM Spike Drove 2Q22 Profit to New High