SPRC: Company’s GRM to Recover in 2Q20E

SPRC: Expect Earnings Recovery in 4Q20 During Winter Season

SPRC: Back to Its Normal Operation in 1Q20

SPRC (SPRC TB): Beneficiary of Strong Refining Margin

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

Pi Research

Thai Equity - Bottom-up - Equities

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

Equity Bottom-Up

Star Petroleum Refining / Equity Bottom-Up

<p>We revise down company’s earning to the loss of Bt956m in 2020E and also trim our target price by 50% to Bt5.7 (from Bt11.6), derived from 0.8xPBV’20E which is -2SD to its 5 year average. We maintain a ‘BUY’ recommendation as we believe current valuation is quite cheap.</p><p>The story:</p><div>• Revise earnings down as refinery margin collapse</div><div>• Petroleum consumption remain weak in 2Q20E</div><div>• Strong balance sheet, compared to peers</div>

We revise down company’s earning to the loss of Bt956m in 2020E and also trim our target price by 50% to Bt5.7 (from Bt11.6), derived from 0.8xPBV’20E which is -2SD to its 5 year average. We maintain a ‘BUY’ recommendation as we believe current valuation is quite cheap.The story:• Revise earnings down as refinery margin collapse• Petroleum consumption remain weak in 2Q20E• Strong balance sheet, compared to peers

Star Petroleum Refining

SPRC: A Harsh Year for Refineries