JPMorgan has reaffirmed its overweight rating on Thai Oil Public Company Limited (SET: TOP), following the company’s impressive second-quarter net profit of THB 8.3 billion. This result exceeded the Bloomberg consensus estimate of THB 7.2 billion, though it fell slightly short of JPMorgan’s own expectation of THB 10 billion.
According to JPMorgan, the difference from their forecast was primarily due to a net inventory and hedging loss of THB 5.7 billion and an impairment of THB 1 billion related to the clean fuels project. The firm noted that these factors are not considered a major concern.
Despite the positive quarterly results, Thai Oil’s share price dipped by 3.6% post-announcement, while the SET Index held steady. Nevertheless, investor conversations suggest renewed buying interest, driven by the company’s strong industry position and the possibility of a dividend increase.
JPMorgan highlighted that 35% of the company’s Clean Fuels Project has been completed. The start-up phase, scheduled for the second quarter of 2027 through the third quarter of 2028, could potentially deliver an EBITDA boost of approximately THB 15 billion. The target price stands at THB 80.00 per share.
