Earnings Report /

Bangchak Corp PCL: A mild 4Q21 miss; further YoY improvement expected for 1Q22

  • Slightly below estimates

  • BCP posted a 4Q21 net profit of Bt1,756m

  • BCP announced 2H21 DPS of Bt1.00

Suppata Srisuk
Suppata Srisuk

Equity Research Analyst

Bualuang Securities
18 February 2022

Expectations of core earnings growth for 1Q22 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 0.6x (1.1SD below its long-term mean of 1.0x) and 2022 dividend yield of 4.9% (against 2.8% 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.

Slightly below estimates

BCP posted a 4Q21 net profit of Bt1,756m, up 598% YoY but down 4% QoQ. Stripping out extra items, the core profit would be Bt2,385m, a YoY turnaround and up 334% QoQ. The result was 7% below our forecast (11% below that of the consensus), due to bigger extra losses than expected. BCP announced 2H21 DPS of Bt1.00, implying a simple yield of 3.4% (XD: 2 Mar, payment: 22 Apr).