BGRIM can be expected to sign up new IU customers, securing further sales volume, mitigating the impact of a rising gas price. Management is also undertaking feasibility studies for a slate of possible power projects across the globe. If it were to announce a new sizable investment, its stock would rally.
Missed our estimates and the street by wide margins
BGRIM announced 3Q21 net earnings of Bt477m, down by 11% YoY and 56% QoQ. The reported number was 39% short of our estimate (a slimmer GM and heavier interest expenses than assumed) and 23% below the street. Stripping out extra items, core profit would be Bt571m, down by 23% YoY and 44% QoQ. The core number was 31% below our estimate (a slimmer GM and higher interest expenses than assumed) and 23% shy of the consensus.