Head of Research, Krungthai XSpring

Waraporn Wiboonkanarak

Head of Research

A full service Thai brokerage

Krungthai XSpring

Krungthai XSpring is a full service broker. The company provides a wide range of investment services such as Securities Brokerage, Derivative Agent Business, Securities Borrowing and Lending, Securities Trading, Underwriting, Financial Advisory, Wealth Advisory, Private Fund Management and International Markets Securities Trading. 

In terms of credibility, Fitch Ratings has assigned Krunghtai XSpring a long-term rating of AA- and a national short-term rating of F1+ with stable outlook.

Equity Bottom-Up

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<h2>RECENT DEVELOPMENTS</h2>
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<li>The delivery of gas from the Zawtika field will be suspended for two weeks after a leakage was found at an onshore pipeline yesterday, which resulted in a drop in gas pressure.</li>
<li>PTTEP is investigating the cause of the leakage, with the preliminary findings showing no trace of an explosion or fire.</li>
<li>Limited impact: PTTEP holds 80% in this project, which has a daily gas output of approximately 322 MMSCFD. </li>
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RECENT DEVELOPMENTS





The delivery of gas from the Zawtika field will be suspended for two weeks after a leakage was found at an onshore pipeline yesterday, which resulted in a drop in gas pressure.
PTTEP is investigating the cause of the leakage, with the preliminary findings showing no trace of an explosion or fire.
Limited impact: PTTEP holds 80% in this project, which has a daily gas output of approximately 322 MMSCFD. 






Big Cap Update - PTT Exploration and Production (PTTEP)

Thai Equity - Bottom-up - Equities, Pi Securities PCL, Thailand

Pi Research

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Pi Securities PCL, Thailand

Pi Securities is a well known securities company with 40 years experience in the industry, serving more than 60,000 clients. We offer one - stop service providing full range of financial products and services including extensive Brokerage, Proprietary Trading (Equities and Bonds), Advisory Services, Structured Products.

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Note: Effective on 1 March 2022, Country Group Securities PCL changed its name to Pi Securities

<ul>
<li>Maintain BUY call with a target price of Bt179. The 2Q22 net profit rose to a record high of Bt20.6bn (+189% YoY, +96% QoQ), 7% higher than our forecast. </li>
<li>2Q22 net profit marked new high 2Q22 net profit rose to a new high of Bt20.6bn (+189% YoY,+96% QoQ),7% higher than our forecast. Excluding extraordinary items, mainly the hedging loss</li>
<li>The volume sales improved to 465kBOED (+5% YoY, +9% QoQ), primarily from production commencement of G1/61 (Erawan) project in 2Q22,together with higher nomination from Arthit and Oman block 61 project.</li>
</ul>


Maintain BUY call with a target price of Bt179. The 2Q22 net profit rose to a record high of Bt20.6bn (+189% YoY, +96% QoQ), 7% higher than our forecast. 
2Q22 net profit marked new high 2Q22 net profit rose to a new high of Bt20.6bn (+189% YoY,+96% QoQ),7% higher than our forecast. Excluding extraordinary items, mainly the hedging loss
The volume sales improved to 465kBOED (+5% YoY, +9% QoQ), primarily from production commencement of G1/61 (Erawan) project in 2Q22,together with higher nomination from Arthit and Oman block 61 project.


<ul>
<li>We estimate PTTEP’s 2Q22 net profit to surge 170%YoY and 83%QoQ on the back of higher sales volume and average selling price.The solid performance is expected to continue in 2H22 </li>
<li>Bright 2Q22 earnings outlook We expect PTTEP to post 2Q22 net profit of Bt19.3bn (+170% YoY, +83% QoQ), driven by solid average selling price and sales volume.</li>
<li>The average selling price (ASP) is forecasted to increase to US$56/BOE (+32% YoY, +8% QoQ) as the reference Dubai crude oil price rose to US$108/bbl (+61% YoY,+13% QoQ) and gas</li>
</ul>


We estimate PTTEP’s 2Q22 net profit to surge 170%YoY and 83%QoQ on the back of higher sales volume and average selling price.The solid performance is expected to continue in 2H22 
Bright 2Q22 earnings outlook We expect PTTEP to post 2Q22 net profit of Bt19.3bn (+170% YoY, +83% QoQ), driven by solid average selling price and sales volume.
The average selling price (ASP) is forecasted to increase to US$56/BOE (+32% YoY, +8% QoQ) as the reference Dubai crude oil price rose to US$108/bbl (+61% YoY,+13% QoQ) and gas


<ul>
<li>PTTEP reported 1Q22 net profit of Bt10.5bn(-9.0%YoY, Flat QoQ).Despite significant growth in sales volume and product selling price, the net profit was dragged by a higher hedging loss of US$240m. </li>
<li>Excluding extraordinary items, the recurring profit stood at Bt18.9bn (+113% YoY, +11% QoQ). YoY surge was underpinned  by a 12% sales volume and 27% average product selling price (ASP) growth.</li>
<li>Positive 2Q22 outlook as we expect the net profit to grow both YoY and QoQ,The gas production commencement from G1/61 and G2/61 projects(Thailand)should aid in a 10% QoQ sales growth. </li>
</ul>


PTTEP reported 1Q22 net profit of Bt10.5bn(-9.0%YoY, Flat QoQ).Despite significant growth in sales volume and product selling price, the net profit was dragged by a higher hedging loss of US$240m. 
Excluding extraordinary items, the recurring profit stood at Bt18.9bn (+113% YoY, +11% QoQ). YoY surge was underpinned  by a 12% sales volume and 27% average product selling price (ASP) growth.
Positive 2Q22 outlook as we expect the net profit to grow both YoY and QoQ,The gas production commencement from G1/61 and G2/61 projects(Thailand)should aid in a 10% QoQ sales growth. 


PTTEP: Hedging Loss Dragged 1Q22 Net Profit

<ul>
<li>We expect PTTEP to post 1Q22 net profit of Bt9.4bn (-18% YoY, -11% QoQ). Despite significant growth in sales volume and product selling price</li>
<li>Excluding the one-time items, the recurring profit is expected to be Bt16.6bn (+228% YoY,-3% QoQ). YoY surge will be underpinned  by a 11% growth in sales volume and a 25% </li>
<li>Bright 2022 outlook from crude oil &amp; gas price surge. We see the volatility to continue considering continued Russia-Ukraine war tensions, Reserve oil release by IEA members and COVID-19 </li>
</ul>


We expect PTTEP to post 1Q22 net profit of Bt9.4bn (-18% YoY, -11% QoQ). Despite significant growth in sales volume and product selling price
Excluding the one-time items, the recurring profit is expected to be Bt16.6bn (+228% YoY,-3% QoQ). YoY surge will be underpinned  by a 11% growth in sales volume and a 25% 
Bright 2022 outlook from crude oil &amp; gas price surge. We see the volatility to continue considering continued Russia-Ukraine war tensions, Reserve oil release by IEA members and COVID-19 


PTTEP: Hedging Loss to Drag 1Q22 Net Profit

Thailand

PTT Exploration and Production Public Company Limited explores for crude oil and natural gas, develops fields for production, and produces oil and natural gas. The Company is a subsidiary of the Petroleum Authority of Thailand.

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PTT E&P (PTTEP TB)

Big Cap Update - PTT Exploration and Production (PTTEP)

PTTEP is the largest Thai E&P operator, with proved reserves at 1,350 million barrels of oil equivalent at the end of 2021.

Krungthai XSpring

PTTEP : Record High Earnings in 2Q22

Maintain BUY call with a target price of Bt179. The 2Q22 net profit rose to a record high of Bt20.6bn (+189% YoY, +96% QoQ), 7% higher than our...

Pi Securities PCL, Thailand

PTTEP : Strong 2Q22 Performance Outlook

We estimate PTTEP’s 2Q22 net profit to surge 170% YoY and 83% QoQ on the back of higher sales volume and average selling price.The solid...

Pi Securities PCL, Thailand

PTTEP: Hedging Loss Dragged 1Q22 Net Profit

PTTEP reported 1Q22 net profit of Bt10.5bn (-9.0%YoY, Flat QoQ). Despite significant growth in sales volume and product selling price, the net...

Pi Securities PCL, Thailand

PTTEP: Hedging Loss to Drag 1Q22 Net Profit

We expect PTTEP to post 1Q22 net profit of Bt9.4bn (-18% YoY, -11% QoQ). Despite significant growth in sales volume and product selling price, the...

Pi Securities PCL, Thailand

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