Asia Plus Securities (ASP) expects B.Grimm Power Public Company Limited (BGRIM) to report a 2Q20 core profit of 1.0 billion baht, an all-time high, with a significant growth from 80.7 million baht in 1Q20 after back to record a profit in fx of 325 million baht when compared to a net loss in fx of 886 million in 1Q20 as THB depreciation against US dollar during that period. Recommends “BUY” at the target price of THB62/share with top pick rating.
Analyst from ASP also foresees a norm profit to slightly decrease by 1% quarter-to-quarter to 675 million baht in 2Q20 as pressured by the Covid-19 pandemic, which affected on industrial users (IUs), and an reducing electricity tariff by 3%, otherwise, BGRIM still has a support from High season solar farm in Vietnam, new industrial user clients, a higher volume of electricity sold to EGAT and a full period contributions from Angthong power plant.
In addition, ASP sees BGRIM as the most beneficiary from LNG imports at the moment. BGRIM has a total installed capacity of 2,455 megawatts in its portfolio, considered as a medium power producer, which led a potential upside among energy and utilities stocks. While expects a profit 2H20 to continue grow from 1H20 following a decline in natural gas price and a recovery in electricity consumption of IUs.