Earnings Report /
Thailand

PTT PCL: 2Q20 earnings as expected; QoQ expansion in sight

  • In line with estimate

  • PTT posted a 2Q20 net profit of Bt12,053m

  • Stripping out extra items

Suppata Srisuk
Suppata Srisuk

Equity Research Analyst

Follow
Bualuang Securities
11 August 2020

Expectations of stronger earnings in 2H20, buoyed by recoveries in demand and margin following the easing of global lockdowns, should boost the stock price going forward. Moreover, we expect the listing of PTTOR to unlock the value of the retail oil business. PTT’s current valuation is undemanding—a YE21 PBV of 1.2x (0.9SD below its long-term mean of 1.6x). Our dividend yield for 2021 is 5.3% (against 3.4% for the SET). There could possibly be upside to the payout, given the company’s huge pile of cash on-hand.

In line with estimate

PTT posted a 2Q20 net profit of Bt12,053m, down 54% YoY but a QoQ turnaround. Stripping out extra items, core earnings would be Bt6,964m, down by 70% YoY and 50% QoQ. NPAT was in line with our estimate and the consensus.