Kaohoon’s Top News on May 6, 2022

1) PTTEP expects 2022 EBITDA Margin at 70-75%

PTTEP projected 2022 EBITDA Margin at 70-75%, following an increase in sales and being able to maintain unit cost at around $28-29 per barrel. The company expected sales in 2Q22 to increase 467,000 barrels per day, boosted by crude oil prices that should trade around $90-130 per barrel this year. Its gas sales should average at $6.4/mbtu this year. There should be further expansion of PTTEP’s investment as well.


2) Analysts recommend investors to accumulate reopening stocks amid Fed’s rate hike

The Federal Reserve hiked policy rate by 0.5% along with its plan for quantitative tightening, which could be a positive driver to the economy. Analysts recommended investors to accumulate reopening stocks such as MINT, AOT, BH, CENTEL and BDMS, and stocks poised to be included in MSCI such as JMT.

The analyst expected inflow to slow down due to weakening Thai baht, but should have a positive sentiment to exports-related stocks such as KCE.


3) ASIAN to report outstanding 1Q results, expecting to list AAI later this year

ASIAN signaled for an outstanding 1Q22 performance, which should be announced on May 9, 2022. The increase would be due to higher sales revenue and costs control. The company expected to list Asian Alliance International into the Thai stock market by October or November.


4) BIS finishes first trading day up 48%, reflecting investors confidence on the business

BIS closed its first trading day with a gain of 48.33% to THB8.90 per share. The company will utilize the funding from the IPO for business expansion, targeting 15-20% growth per annum for the next 3-5 years.


5) Analysts expect BFIT’s 2022 results to grow outstandingly after merging with SCAP

Financial statement of Srisawad Finance Public Company Limited (SET: BFIT) is expected to grow outstandingly after the merger with SCAP in 3Q22. The Independence Financial Advisor estimated SCAP’s earnings in 2022 around 800 million baht, representing a 170% growth. Meanwhile, analysts are expected to raise BFIT’s estimate and target price, saying that the current price does not recognize earnings from SCAP that should have a double growth moving forward.