Earnings Report /
Thailand

Banpu PCL: Impressive 1Q22 result; forecast upgrade flows ahead!

  • Below estimates

  • BANPU reported a 1Q22 net profit of Bt10,264m

  • Sales increased by 86% YoY but declined 13% QoQ

Suppata Srisuk
Suppata Srisuk

Equity Research Analyst

Bualuang Securities
11 May 2022

As the current coal price has risen substantially, further upside to the coal prices seems limited, so we don’t see any obvious catalyst for the share price in the near-term. However, its undemanding valuation—trades at a YE22 PBV of 1.1x (0.3SD below its long-term mean of 1.2x)—and a scope for upside to its long-term earnings profile from potential new investments in smart energy businesses (BanpuNEXT) should support the downside risk to the share price.

Below estimates

BANPU reported a 1Q22 net profit of Bt10,264m, up 7-fold YoY and 194% QoQ. Stripping out extra items, core earnings would be Bt8,878m, up 12-fold YoY but down 18% QoQ. The result was 28% below our estimate, due to lower equity income and smaller extra gains than assumed (10% below the consensus).