PTT PCL: Strong 1Q21 earnings, as expected; core profit to expand further in 2Q2

  • In line with estimate
  • PTT posted 1Q21 NPAT of Bt32,587m
  • PTT’s 2Q21 core earnings look set to expand YoY

The expansive earnings outlook for 2Q21 and 2021, buoyed by an ongoing demand recovery and margin expansion, should prompt the market to bid up PTT’s stock price going forward. Also, potential new investments would add to long-term earnings growth. The current valuation is undemanding—a YE21 PBV of 1.2x (0.8SD below its long-term mean of 1.6x). Also, we expect a dividend yield for 2021 of 5.0% (against 2.9% for the SET). There could possibly be upside to the payout, given the company’s huge pile of cash on-hand.

In line with estimate

PTT posted 1Q21 NPAT of Bt32,587m, a YoY turnaround and up 148% QoQ. Stripping out extra items, core profit would be Bt17,826m, up by 28% YoY and 33% QoQ. The result was in line with our estimate and the consensus.

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