GREATER CHINA Economics Trade: August trade figures surprise on the upside. INDONESIA Update Kalbe Farma (KLBF IJ/BUY/Rp1,460/Target: Rp1,800): Upping the growth guidance to double digit with -2SD valuation. MALAYSIA Sector Banking: The sector delivered a solid PPOP growth of 7% yoy. Earnings growth outlook is robust at 26% and 15% for 2021 and 2022 respectively. Maintain OVERWEIGHT. Gloves: 2Q21: Results were largely within expectations amid output more than offsetting ASPs. Industry dynamics...
Since our upgraded note was published on 12 August, BCP’s share price has soared by 17%, outperforming its peers over the last month. BCP is still trading at a cheap valuation of 8.4x on its 2022F PE and 0.9x P/B with an impressive dividend yield of 4.1% for 2022. Still, we see room for BCP’s share price to outperform, further supported by a rebound in GRM, seasonally high renewable projects and catalysts on the spin-off of BBGI. Maintain BUY with a target price of Bt30.00.
BCP’s 2Q21 net profit is in line with market expectations but 12% above our estimate due to higher inventory gains of Bt1.3b. Core profit was Bt545m (+22% yoy, 43% qoq), largely in line with our estimates. We expect BCP to benefit from a higher contribution from the renewable and E&P businesses in 2H21, which will result in a higher-than-peers core profit. We believe that the upside risk is much greater after the recent share price correction. Upgraded to BUY with a target price of Bt30.00.
KEY HIGHLIGHTS Results Airports of Thailand (AOT TB/HOLD/Bt56.75/Target: Bt58.00) 3QFY21: Earnings below expectation, but negatives fully priced in. Upgrade to HOLD. Bangchak Petroleum PCL (BCP TB/BUY/Bt23.40/Target: Bt30.00) 2Q21: Results in line, buy on dip. Upgrade to BUY. Bangkok Expressway and Metro (BEM TB/BUY/Bt7.75/Target: Bt9.30) 2Q21: Poor earnings but slightly higher than anticipated. Chularat Hospital (CHG TB/BUY/Bt4.04/Target: Bt4.60) 2Q21: Earnings set a new record thanks ...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
KEY HIGHLIGHTS Results Bangchak Petroleum (BCP TB/HOLD/Bt26.00/Target: Bt30.00) 1Q21: Slim core profit as expected. CP ALL (CPALL TB/HOLD/Bt60.75/Target: Bt65.00) 1Q21: Disappointing results; downgrade to HOLD. Electricity Generating (EGCO TB/BUY/Bt175.00/Target: Bt242.00) 1Q21: Results in line; positive outlook. PTT Global Chemical (PTTGC TB/BUY/Bt67.25/Target: Bt75.00) 1Q21: Result was 10% higher than consensus; 2Q21 earnings expected to be this year’s quarterly peak. Star Petroleum Refin...
KEY HIGHLIGHTS Results AP Thailand (AP TB/BUY/Bt6.75/Target: Bt8.20) 3Q20: Sets a new earnings record. Bangchak Petroleum (BCP TB/HOLD/Bt17.20/Target: Bt19.50) 3Q20: Posted quarterly loss again. GFPT (GFPT TB/SELL/Bt11.50/Target: Bt9.80) 3Q20: Higher-than-expected earnings; 2021 earnings would decline yoy. Downgrade to SELL. PTT (PTT TB/BUY/Bt38.00/Target: Bt48.00) 3Q20: Net profit in line with our estimate, but beat consensus by 11%; expect the improvement in earnings...
GREATER CHINA Results AAC Technologies (2018 HK/SELL/ HK$53.00/Target: HK$39.10): 2Q20: Both results and 2H20 guidance below expectations. China Resources Cement Holdings (1313 HK/BUY/HK$10.76/Target: HK$12.80): 1H20: Results beat expectation; a brighter 2H in sight. Fuyao Glass (3606 HK/HOLD/HK$24.75/Target: HK$27.00): 2Q20: Net profit down 44% yoy, in line with expectation. Downgrade to HOLD on valuations. Han’s Laser (002008 CH/BUY/Rmb38.53/Target: Rmb48.00): 1H20: Results in line with upbe...
Following a huge cash call from BCPG, we cut our core profit forecasts by 14% and 11% for 2021-22 respectively to reflect the stake dilution in BCPG from 70% to 56% in 2021. We also see potential risk from foreign institutional investors selling down their stakes after the one-year lock-up period. However, we expect BCP’s share price to trade sideways in 2H20. Maintain HOLD with a lower target price of Bt19.50. Entry price: Bt16.50.
GREATER CHINA Results China Feihe (6186 HK/BUY/HK$16.26/Target: HK$20.00): 1H20: Infant milk formula juggernaut displays perfect execution amid COVID-19. Hong Kong Exchanges and Clearing (388 HK/HOLD/HK$373.60/Target: HK$365.00): 1H20: Stable revenue growth driven by higher ADT; downgrade to HOLD. Powerlong Real Estate Holdings (1238 HK/BUY/HK$5.98/Target: HK$6.61): 1H20: Strong results; Rmb75b contracted sales target for 2020. SINGAPORE Strategy 1H20 Results Wrap: 1H20 results were worse than ...
Like others Thai refineries, we expect no meaningful earnings improvement from BCP in 3Q20. We expect a higher contribution from the renewable business but offset by a weaker refinery performance on higher crude premiums and low run rate. We are concerned over 1H21 earnings due to the impact of scheduled shutdown. However, we see limited downside in share price. Maintain HOLD with a lower target price of Bt21.80. Entry price: Bt18.50.
KEY HIGHLIGHTS Update Bangchak Petroleum (BCP TB/HOLD/Bt19.10/Target: Bt21.80) Near-term story still not attractive, but limited price downside. BEC World (BEC TB/BUY/Bt4.30/Target: Bt5.00) 2H20 results would improve hoh; upgrade to BUY. Central Plaza Hotel (CENTEL TB/BUY/Bt24.40/Target: Bt29.75) Recovery about to start. Dynasty Ceramic (DCC TB/BUY/Bt2.36/Target: Bt2.70) Management’s good strategic moves and low gas prices have enabled DCC to grow its earnings amid the pandemic. Upgrade to...
BCP reported a huge net loss of Bt1.9b in 2Q20 on a Bt900m impairment loss for Thai Airways. Excluding extra items, core profit was Bt446m, higher than our expectation. Although BCP’s share price is trading at cheap valuations of 0.6x 2021F P/B, We are concerned that the crude premium outlook will negatively impact earnings in 3Q20. Maintain HOLD. Target price: Bt23.00. Entry price: Bt19.00.
KEY HIGHLIGHTS Results AP Thailand (AP TB/BUY/Bt6.35/Target: Bt7.70) 2Q20: Net profit grew 149% yoy. Bangchak Petroleum PCL (BCP TB/HOLD/Bt19.20/Target: Bt23.00) 2Q20: Net loss larger than expected, but core profit better than expected. Esso Thailand (ESSO TB/SELL/Bt7.35/Target: Bt5.20) 2Q20: Posted a surprise loss. Downgrade to SELL. GFPT (GFPT TB/BUY/Bt12.90/Target: Bt19.30) 2Q20: Earnings should be this year’s bottom. MK restaurant Group Plc (M TB/HOLD/Bt51.25/Target: Bt...
GREATER CHINA Sector Automobile: PV retail sales drop deteriorated in the second week of June, while wholesale shipment kept growing. Maintain MARKET WEIGHT. Top picks: DFM, Brilliance and Yongda. Update China Mengniu Dairy (2319 HK/BUY/HK$30.40/Target: HK$34.50): Management upbeat on sales recovery in 2H20 and beyond. INDONESIA Update Ace Hardware Indonesia (ACES IJ/HOLD/Rp1,490/Target: Rp1,460): Recovery in 2021, but fully priced in at +1SD valuation. MALAYSIA Results Astro Malaysia (Astro M...
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