Mr. Chaiwat Kovavisarach, Group Chief Executive Officer of Bangchak Group and President and CEO of Bangchak Corporation Public Company Limited (SET: BCP), stated that the company’s Board of Directors has approved a share repurchase (Treasury Stocks) program for financial management, with a total budget not exceeding THB 3.8 billion over 3 years, from 2025 until 2028.
The first tranche of share repurchases will take place in 2025 with a budget not exceeding THB 1.1 billion and a repurchase volume not exceeding 29.50 million shares or up to 2.14% of total outstanding shares. The shares will be bought through automatic matching on the Stock Exchange of Thailand (SET), with a repurchase period of 6 months, spanning from 16 December 2025 to 15 June 2026.
Krungsri Securities holds a positive outlook on BCP’s share repurchase program, expecting the short-term share price to be supported by the repurchase budget of around THB 1.1 billion for the first year. This implies the maximum repurchase price could reach approximately THB 37 per share and will help increase earnings per share (EPS) for shareholders. BCP’s liquidity is seen as sufficient, with a standalone cash balance of THB 1.8 billion and consolidated cash of THB 27 billion as of 3Q25.
Krungsri maintains a “Buy” recommendation on BCP with a target price of THB 44 per share, viewing that the refinery business is in recovery in line with improving margins, with anticipated performance upgrades after refinery and plant upgrades, and further supported by tight oil market conditions raising gross refining margins.
The marketing segment shows positive prospects with rebounding marketing margins and sales growth in the commercial segment, particularly from marine fuel sales. Meanwhile, the power business is buoyed by U.S. electricity prices and full-year income from the Monsoon wind farm in Laos. OKEA ASA (OKEA), BCP’s subsidiary, also has further growth potential from mergers and acquisitions, currently holding cash accounting for 20% of total assets.
Trinity Securities also has a positive view of the share repurchase program, seeing it as a reflection of BCP’s shares trading below intrinsic value, with the current price-to-book value (P/BV) ratio at 0.66x—below historical averages. The repurchase will improve return on equity (ROE) and EPS.
Moreover, The company’s financial position remains strong, with retained earnings of over THB 31.04 billion and cash/liquid assets of more than THB 2.52 billion. Redeploying excess cash underscores confidence in future profits and cash flows. Trinity maintains a “Speculative Buy” recommendation with a target price of THB 37.25 per share.
Daol Securities (Thailand) recommends “Buy” on BCP with a target price of THB 34.00 per share. The securities company holds a positive view on the company’s share repurchase program, expecting the maximum repurchase price in the first year to not exceed THB 37.29 per share (about 33% above the latest closing price).
Additionally, Daol also maintains its forecasts for core profit in 2025 and 2026 at THB 5.4 billion and THB 6.4 billion, respectively, compared to a loss of THB 802 million in 2024. The securities company also estimated that BCP will benefit from strong oil product and crude oil crack spreads in 4Q25. Daol’s “Buy” recommendation for 2026 remains with a target price of THB 34.00.
Phillip Securities (Thailand) also takes a positive stance, viewing the share repurchase program as effective excess liquidity management, boosting returns and net profit per share. It estimates the first phase of the repurchase could positively affect the share price by about 1-2%, reflecting management’s expectation in BCP’s intrinsic value being higher than current market price.
Phillip maintains its “Buy” recommendation with a target price of THB 47 per share, citing further upside from the share repurchase program. However, a short-term speculative buy is advised, given global oil prices are pressured by easing supply from the Russia-Ukraine war situation.
Kasikorn Securities sees BCP’s share repurchase program as modestly positive for investment sentiment. The first phase accounts for 2% of total shares after Bangchak Sriracha Public Company Limited (SET: BSRC) shares are delisted, with an average repurchase price of approximately THB 37 per share. The company plans to buy an average of 227,000 shares per day, which is 3% of the average daily trading value in 2025.
Continued share repurchases are regarded as sound cash management and will enhance long-term shareholder returns. The “Outperform” recommendation is maintained, with a target price of THB 34.40 per share.
