Expectations of YoY core earnings growth for 3Q22 and 2022 along with 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 0.5x (1.5SD below its long-term mean of 1.0x) and infers a 2022 dividend yield of 9.1% (against 3.0% for the SET) which should buffer against the risk of price slippage. Within Refinery space, we still 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 2Q22 net profit of Bt5,276m, up 199% YoY and 21% QoQ. Stripping out extra items, the core profit would be Bt7,749m, up 13-fold YoY and 8-fold QoQ. The result was in line with our forecast and that of the consensus.