Expectations of core earnings growth for 2Q22 and 2022 and the market’s favorable perceptions over the potential for growth among new businesses should support the share price going forward. In any case, BCP currently trades at a YE22 PBV of just 0.7x (1SD below its long-term mean of 1.0x) and 2022 dividend yield of 4.2% (against 2.7% for the SET) which should buffer against the risk of price slippage. Within Refinery space, we prefer TOP, as its production cost efficiency makes its earnings profile relatively more leveraged to a rebounding GRM.
In line with estimates
BCP posted a 1Q22 net profit of Bt4,356m, up 91% YoY and 148% QoQ. Stripping out extra items, the core profit would be Bt995m, a YoY turnaround but down 58% QoQ. The result was in line with our forecast and that of the consensus.