Among our Transportation coverage, BEM should prove to be the least-impacted by COVID-19 and the first to fully recover. We also expect the tender for the Orange Line to trigger speculative trading flows, boosting the stock price in the short run. As such, BEM is one of our top Transportation picks.
Better than our estimate and the consensus
BEM reported a 2Q20 net profit of Bt152m, down by 95% YoY and 70% QoQ. The firm also posted core earnings of Bt152m (no extra item), down by 79% YoY and 70% QoQ. Those numbers were 40% above our forecasts and 36% above the street projections, due to greater dividend income than assumed.