Kaohoon’s Top News on March 16, 2022

Headline: PTTEP to take over operation of Yadana gas field after Total exits

PTT Exploration and Production Plc. (SET: PTTEP) will take over operations of Myanmar’s Yadana gas field in July following TotalEnergies’ exit. This will increase PTTEP’s interest in the field to 37.08 percent from 25.50 percent. Analysts anticipate an upward share price support of THB1.50-2.00 per share, as production volume is likely to expand by 4,000 barrels per day, generating an additional profit of THB400 million per year. Recommend “Speculative Buy” with a target price of THB152.00.  


Headline: KBANK stands out among banking companies due to its P/BV ratio of 0.7x

The Federal Reserve is expected to raise interest rates by 0.25-0.50 percent for the first time in four years to prevent inflation, and Thai commercial banks would take advantage of this. The Siam Commercial Bank Plc. (SET: SCB) and Kasikornbank Plc. (SET: KBANK) stand out. Analysts anticipate KBANK’s net profit to be THB40 billion in 2022, with a P/BV ratio of only 0.7-0.8, and a target price of THB168.00.


Headline: CRC plans THB20 billion investment this year

Central Retail Corporation Plc. (SET: CRC) expects to invest between THB18,000 and 20,000 this year to extend its branch network to around 600 outlets, an increase of 2-3 times over the last year, when the plan was delayed owing to the impact of COVID-19. CRC established a revenue target of 20 percent growth over the previous year for this year.


Headline: BGRIM’s first commercial shipment of 500,000 tonnes of LNG will arrive in early 2023

B.Grimm Power Plc (SET: BGRIM) confirmed that the company’s first commercial shipment of 500,000 tonnes of LNG will arrive in January 2023. This initial phase will primarily serve 18 power plants, lowering the cost of electricity production by around 5-10 percent. Following that, BGRIM will seek to negotiate with industrial customers for an additional 750,000 tons of imports in 2026. Additionally, the company anticipates concluding 2-3 M&a deals in the near future, confident that it would raise production capacity by at least 1,000 megawatts this year, boosting revenue by 15-20 percent.


Headline: CPF readies to export chicken products to Saudi Arabia within this month, reclaiming its position as the leading exporters

Charoen Pokphand Foods Plc. (SET: CFP) announced that its five chicken processing plants are among 11 Thai factories that have been certified by the Saudi Food & Drug Authority (SFDA) to ensure the company’s chicken quality is safe and strictly manufacturing under international Halal standard. The export to Riyadh is expected by this month.