Earnings Report /
Thailand

IRPC PCL: 1Q21 NPAT in line; further YoY recovery expected for 2Q21

  • Core profit beat estimate; net profit in line

  • IRPC posted a 1Q21 net profit of Bt5,581m

  • We expect IRPC’s 2Q21 core operation to improve further YoY

Suppata Srisuk
Suppata Srisuk

Equity Research Analyst

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Bualuang Securities
12 May 2021

Expectations of a YoY core operational turnaround for 2021, driven by a bigger crude run and an expanded market GIM, should trigger a share price rally. Moreover, there’s scope for upside to our earnings projection from cost-saving initiatives. IRPC’s valuation is still undemanding—a YE21 PBV of 1.1x (0.6SD below its long-term mean of 1.4x).

Core profit beat estimate; net profit in line

IRPC posted a 1Q21 net profit of Bt5,581m, a YoY turnaround and up 247% QoQ. Stripping out extra items, the core profit would be Bt960m, a YoY turnaround and up 122% QoQ. While the bottom-line was in line with our model (and the consensus), core earnings were somewhat above our estimate, due to a higher Chemical biz profit than expected.