On Friday at 11:30 AM (Bangkok time), the share price of Bangchak Corporation Public Company Limited (SET: BCP) advanced by 1.63% or THB 0.50 to THB 31.25, with a trading value of THB 51.90 million.
DAOL Securities has become increasingly optimistic regarding BCP’s business outlook for the second half of 2025 and its long-term strategy, citing several key factors:
- Profitability remains on track for continued improvement in 2H25, primarily driven by higher crude run rates and improved refining margins from its refinery operations. The company is also poised to benefit from its clean energy business, with the hydropower plant in Laos entering high season and higher capacity prices anticipated from the U.S.-based natural gas power plant (US CGGT).
- BCP has restructured its business and set an ambitious target to double its EBITDA by 2028 (from 2025 levels). Growth is expected to come from existing operations—including refining, marketing, bioenergy, and upstream activities (such as OKEA)—as well as enhanced performance in its flagship oil trading division.
- The company has unveiled plans for a share buyback program over 2026–2028, with a proposal slated for submission to the board of directors this year to consider the funding framework for the planned buyback.
DAOL has upgraded its recommendation for BCP from ‘Hold’ to ‘Buy,’ maintaining the 2025 target price at THB 34.00 per share, based on a sum-of-the-parts (SOTP) valuation. The positive outlook is supported by anticipated profit recovery in 2H25. For the third quarter of 2025, the analyst notes that the company is set to return to profit, with reduced stock loss (net of NRV) serving as a key contributor.
