Earnings Report /
Thailand

Bangkok Expressway & Metro PCL: Strong recovery signs; a good Orange Line tender play

  • Result missed our estimate, but was still impressive

  • BEM reported 2Q22 net and core earnings of Bt634m

  • Sales increased by 35% YoY and 5% QoQ

Bualuang Securities
15 August 2022

Public transport usage will expand further going forward. Moreover, as BTS decided not to participate in the tender for the Orange Line, we think BEM-CK group will win the bid, due to cost advantages tied to incumbency (such as owning some joint stations) against the ITD-Incheon Transit Corporation consortium (the only other bidder for this tender). The stock should start rallying soon. BUY!

Result missed our estimate, but was still impressive

BEM reported 2Q22 net and core earnings of Bt634m, up by 187% YoY and 89% QoQ. Those numbers missed our estimates by 15% (a heavier cost-of-sales than assumed) but were 9% ahead of the consensus.