Equity Analysis /
Thailand

Bangkok Expressway & Metro PCL: Fast recovery, big upside, still cheap!

  • Won the Orange Line bid

  • Massive earnings contribution expected

  • Strong recovery

Bualuang Securities
12 September 2022

Winning the Orange Line tender means major street profit forecast and target price upgrades. Moreover, travel activity is recovering fast and the reopening of the QSNCC adds to the robust outlook. Although we expect record high earnings for 2023, BEM’s current stock price remains below its pre-COVID level. BUY!

Won the Orange Line bid

The MRTA announced that BEM won the tender for the Orange Line. The firm requested the smallest subsidy of Bt78bn (the ITD-Incheon Transit Corp consortium asked for Bt103bn). The Orange Line will com-prise two sections. The eastern section (17km, 17 stations; SCOD 2025) will run from the Thailand Cultural Center to Minburi. The western section (13km, 11 stations: SCOD 2027) will run from Bang Khun Non to the Thailand Cultural Centre. The line covers heavy-traffic areas, so we expect high ridership and earnings after it starts operating.