DBS Bank has reaffirmed its positive outlook on Bangkok Expressway and Metro Public Company Limited (SET: BEM), maintaining a ‘BUY’ rating and a sum-of-the-parts-based target price of THB9.00, following a recent non-deal roadshow with investors in Singapore. Feedback was slightly positive, aligning with DBS’s medium- to long-term investment thesis, despite the near-term earnings catalysts remain limited.
DBS highlighted four key growth drivers for BEM over the next 3-5 years: implementation of a common fare system (projected for 1Q–2Q27), development of the Orange Line (2028–2030), operational and maintenance contracts for the Purple Line South (2030), and the anticipated Double Deck Expressway (2030).
Financially, BEM appears well-positioned, with an expected annual cash flow uplift of THB5–6 billion after the expiration of Blue Line revenue sharing in 2029. The company’s debt covenant remains healthy at 3.0x, compared to its current net interest-bearing debt/equity ratio of 2.17x in 1Q26. Funding costs are steady at around 3%, with no plans for equity fundraising.
In conclusion, DBS remains convinced of BEM’s positive long-term prospects, supported by visible growth avenues and comfortable funding capabilities.
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