Coal and gas prices are rising, squeezing GPSC’s 2022-23 earnings profile and share price. However, its good long-term outlook stands unchanged and we expect its aggressive expansion plans for EV & battery ventures to generate positive sentiment toward the stock.
NPAT was in line with our estimate, but the core number missed
GPSC posted a 4Q21 bottom-line of Bt1,168m, down by 20% YoY and 38% QoQ. The reported number was in line with our estimate (but was 36% below the consensus). Stripping out extra items (mainly an insurance payout), core profit would be Bt396m, down by 73% YoY and 80% QoQ. Core earnings missed our expectation by 43% (slimmer GM, heavier SG&A costs, and lower equity earnings than assumed) and the consensus by 73%.