The share price of Tipco Asphalt Public Company Limited (TASCO) rose ฿0.60/share or 3.08% to ฿20.10/share as of 11:15 local time in Thailand, with a trading value of 506 million baht.
Capital Nomura Securities (CNS) forecast TASCO to report a net profit of 625 million baht in 2Q21 (-64%YoY, +48%QoQ), mainly due to an increase in asphalt price. Moreover, the oil supply that can still be used is secured during the drop in its price, resulting in a better profit margin.
TASCO’s earnings momentum is expected to continue in 3Q21 from a gain on bail of 250 million baht. While overall earnings for 2021 are predicted to be 1.55 billion baht (-57 YoY), citing a room for upside.
Recommended “Speculative-Buy” in anticipation of positive 2Q21 earnings outlook.