Earnings Report /
Thailand

Banpu PCL: 3Q21 core profit beats estimate big time; 4Q21 to be the best of 2021

  • Core profit beat our estimate; bottom-line below estimates

  • BANPU reported a 3Q21 net profit of Bt3,505m

  • Sales increased by 159% YoY and 53% QoQ

Suppata Srisuk
Suppata Srisuk

Equity Research Analyst

Bualuang Securities
11 November 2021

The expectations of substantial core earnings growth in 4Q21 should catalyze the share price going forward. BANPU’s current valuation is undemanding—a YE22 PBV of 0.9x (0.6SD below its long-term mean of 1.2x). And there’s scope for upside to its long-term earnings profile from potential new investments in smart energy businesses (BanpuNEXT).

Core profit beat our estimate; bottom-line below estimates

BANPU reported a 3Q21 net profit of Bt3,505m, a YoY turnaround and up 164% QoQ. Stripping out extra items, core earnings would be Bt7,993m, a YoY turnaround and up 235% QoQ. While the bottom-line was somewhat below our estimate (22% below the consensus), due to bigger extra losses than assumed, the core profit was far above our forecast, due to bigger earnings at coal and gas biz than expected.