Earnings Report /
Thailand

Banpu PCL: A slight 2Q22 earnings beat; 3Q22 looks like another good quarter

  • Above estimates

  • BANPU reported a 2Q22 net profit of Bt12,789m

  • Sales increased by 143% YoY and 47% QoQ

Suppata Srisuk
Suppata Srisuk

Equity Research Analyst

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Bualuang Securities
11 August 2022

As the current coal price has risen substantially, further upside to the coal prices seems limited, so we don’t see any obvious catalyst for the share price in the near-term. However, its undemanding valuation—trades at a YE22 PBV of 1.2x (its long-term mean)—and scope for upside to its long-term earnings profile from potential new investments in smart energy businesses (BanpuNEXT) should support the downside risk to the share price.

Above estimates

BANPU reported a 2Q22 net profit of Bt12,789m, up 10-fold YoY and 25% QoQ. Stripping out extra items, core earnings would be Bt15,618m, up 7-fold YoY and 76% QoQ. The bottom-line was 10% above our estimate (13% above the consensus’), due to higher coal ASP than expected and bigger extra gains than assumed.