KSS Recommends to Accumulate BSRC ahead of 3Q24 Peak in GRM

Krungsri Securities (KSS) stated that the tone from an analyst meeting yesterday was neutral as BSRC is expected to receive positive sentiment from the synergies as planned, leading to a possibility to generate an EBITDA of more than THB 2.5 billion in 2024. Meanwhile, BSRC is looking to improve its synergies in marketing businesses, such as non-oil business, oil refinery, and logistics.

BSRC is rebranding its oil stations, currently completing 279 stations. The station rebranding is expected to be totally completed by the end of 2024 and will benefit the sales of premium products.

KSS gave a ‘BUY’ recommendation with a target price of THB 11.50 per share, seeing the current price is being pressured by lower crack spread in 2Q24TD, which could be an opportunity to accumulate shares prior to a rise in GRM that should be higher in 3Q24 from driving season in the US.