Chaiwat Kovavisarach, Group Chief Executive Officer of Bangchak Corporation Public Company Limited (SET: BCP), revealed that BCP has signed a share purchase agreement with Chevron Companies (Greater China) Limited (CCGC) to acquire 100% stake in Chevron Hong Kong Limited (CHK). CHK operates oil retailing through service stations, industrial oil business, marine fuel business, with internationally standardized oil depots and terminals. The preliminary share purchase price is set at $270 million, equivalent to THB 8,400 million.
The investment in CHK will further enhance BCP’s capabilities to expand its oil retail business abroad more efficiently, including developing a fully integrated marine fuel business, expanding its customer base, strengthening energy logistics, and creating new opportunities for long-term growth. The share purchase transaction is expected to be completed by mid-year.
Trinity Securities views this deal as strategically positive for BCP, as it extends the value chain from refining/marketing in Thailand to the regional energy trading hub in Hong Kong, giving the company a commercial client base and marine fuel avenues—an attractive segment in terms of margin and growth, as Hong Kong is a trading hub for the region.
For valuation, considering the preliminary purchase price in USD versus CHK’s 2024 net profit of HKD 263 million (about $33.64 million), the P/E ratio stands at around 8x, markedly inexpensive compared to Thai listed industry peers with an average P/E of 15x.
Hong Kong enjoys higher retail oil marketing margins than Thailand, enhancing BCP’s overall profit potential, creating a “captive market” for the company’s refinery output over the long term. As a global maritime hub, Hong Kong offers a golden opportunity for direct marine fuel business expansion, adding value to refinery products.
The brokerage firm maintains a “Speculative Buy” recommendation with a target price of THB 40.
Krungsri Securities also maintains a “Buy” rating on BCP, raising the target price to THB 47.50 per share, anticipating sustained earnings improvement from 4Q25 through 1Q26, driven by high base GRM and falling inventory loss.
For 2026, there should be no major shutdowns, while refinery and equipment upgrades will boost production efficiency, reduce costs, and sharply support net profit growth—an estimated 187% year-on-year. While the share price has lagged due to major shareholder concerns, these are expected to ease by early March, releasing short-term pressure.
Long-term, BCP has further growth potential from additional cash flows; the recent acquisition of the Hong Kong oil retail business is expected to add 6-11% to 2025-2026 earnings, with more details anticipated after the February 17, 2026 analyst meeting—which could further affect future forecasts.
