Kaohoon’s Top News on February 2, 2022

Headline: PTTEP expects better core earnings driven by larger sales volume and higher average selling price

PTT Exploration and Production (SET: PTTEP) expects solid earnings growth this year, thanks to larger sales volume (about 470k bpd), a higher average selling price, and lower unit costs. PTTEP is now accelerating the increase of oil output at the Erawan gas field to compensate for the loss during the transition phase beginning in April. Analysts reiterate a rating of “BUY” with an unchanged target price of THB145.00.


Headline: Foreign investors buoyed the SET Index in January with a net buy of THB14 billion

Foreign investors buoyed the SET Index in January with a net buy of THB14.3 billion and THB1.3 billion on February 1. The banking and energy sectors accounted for the majority of purchases. According to analysts, it was because the majority of banking stocks are considered value stocks, hence they recommend Kasikornbank (SET: KBANK), Bangkok Bank (SET: BBL), Siam Commercial Bank (SET: SCB), and Krung Thai Bank (SET: KTB).


Headline: CIVIL awarded 3 new projects worth THB2,000 million

Civil Engineering (SET: CIVIL) has been awarded three new projects for THB2,000 million by the government. Moreover, the company is preparing to sign a new large-scale construction project, the M82 Ekachai-Ban Phaeo section 1, at THB1,911 million. CIVIL’s share price finished 5% higher on Tuesday, surpassing its initial public offering price.


Headline: PTG-EA see limited impact from Energy committee’s decision to restrict options to biodiesel B5

Biodiesel stocks (B100), including AI Energy (SET: AIE), Global Green Chemical (SET: GGC), PTG Energy (SET: PTG), Energy Absolute (SET: EA), UAC Global (SET: UAC) and Bangchak Corporation (SET: BCP), are expected to be impacted by the Energy committee’s decision to restrict options to biodiesel B5, starting February 5. Analysts, on the other hand, foresee only a short-term impact and benefits from increased palm oil prices. This would result in solid profit growth in 1Q22 for the aforementioned stocks.


Headline: MRTA opens 6 contracts for MRT Purple Line worth THB82 billion

The Mass Rapid Transit Authority of Thailand (MRTA) has opened six contracts at THB82 billion for the MRT Purple Line. Ch. Karnchang (SET: CK), together with Sino-Thai Engineering and Construction (SET: STEC) won two contracts totaling THB35 billion, Italian-Thai Development won two contracts totaling THB16.7 billion on its own and one contract totaling THB15.1 billion in partnership with Nawarat Patanakarn (SET: NWR), and Unique Engineering and Construction (SET: UNIQ) won one contract totaling THB14.9 billion.