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Electricity Generating PCL: Unexciting result; 2Q21 core profit should be better

  • Huge FX loss hit bottom-line
  • EGCO reported a 1Q21 net profit of Bt585m
  • Revenue declined by 19% YoY and 4% QoQ

EGCO’s current stock price implies the cheapest PERs for 2021-22 among our Utilities coverage. If the firm were to announce a substantial new investment or a higher dividend payout, we would expect a stock price rally. As such, our TRADING BUY call stands.

Huge FX loss hit bottom-line

EGCO reported a 1Q21 net profit of Bt585m, a YoY turnaround but down 68% QoQ. The bottom-line was 50% short of our estimate (greater FX losses and lower equity earnings than assumed). Stripping out extra items, core earnings would be Bt2,228m, down 7% YoY but up sharply from a slim core profit for 4Q20. The core number missed our projection by 12%, due to smaller equity earnings than assumed.


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