A declining gas price trend should make for GM and earnings expansion for BGRIM during 2H20. Its core profit profile for the rest of 2020 and 2021 is impressive. Moreover, we expect the firm to announce some new investments soon. Our BUY call stands.
Good result, as we had projected (but beat the consensus)
BGRIM announced 2Q20 net earnings of Bt1,017m, up by 63% YoY and 1,160% QoQ. The reported number was in line our estimate, but was 18% ahead of the street. Stripping out extra items, core profit would be Bt674m, up 17% YoY but down 1% QoQ. The core number was also in line with our projection (and with the consensus).