Equity Analysis /
Thailand

PTT PCL: Better short-term outlook with ample room for long-term growth

  • Core earnings expansion expected for 2Q22

  • New businesses...playing a greater role driving long-term growth

  • Solid financial position facilitating investments and dividend payout

Suppata Srisuk
Suppata Srisuk

Equity Research Analyst

Bualuang Securities
19 May 2022

Expectations of earnings expansion 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 4.7% (against 2.8% for the SET).

Core earnings expansion expected for 2Q22

PTT’s 2Q22 core earning is poised to expand further YoY, with bigger profits at the E&P, oil, and refining businesses. Also, the core profit is projected to rise QoQ, driven by better numbers at the gas, E&P, oil, and refining units and contributions from new businesses. PTT’s gas biz looks set to soften YoY, due to lower sales volume of GSP and slimmer margin, but improve QoQ (fatter margin). E&P biz profit should expand YoY and QoQ, buoyed by greaterer sales volume and higher sales price.