Expectations of further earnings improvement for 2Q22 should support the share price going forward. Also, potential new investments would add to long-term earnings growth. The current valuation is undemanding—a YE22 PBV of 1.0x (1.2SD below its long-term mean of 1.6x) with an attractive dividend yield for 2022 of 4.8% (against 2.7% for the SET).
Slightly below estimates
PTT posted 1Q22 net profit of Bt25,571m, down 22% YoY and 7% QoQ. Stripping out extra items, core profit would be Bt40,302m, up by 126% YoY and 57% QoQ. The result was 9% below our estimate (12% below the consensus’), due to bigger extra losses than assumed.