Earnings Report /
Thailand

B Grimm Power PCL: Deep miss! A rising gas price will squeeze 4Q21

  • Missed our estimates and the street by wide margins

  • BGRIM announced 3Q21 net earnings of Bt477m

  • Revenue increased by 5% YoY

Kijapat Wongmetta
Kijapat Wongmetta

Equity Research Analyst

Bualuang Securities
12 November 2021

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.