The share price of Banpu Public Company Limited (BANPU) jumped ฿0.50/share or 4.03% to close the morning session at ฿12.90/share with a trading value of 1,141 million baht. The highest share price in the morning session was ฿13.00/share and the lowest was ฿12.60/share.
BANPU continued to edge higher as the coal price (Newcastle) closed at 95.40 dollars per ton, a new high in two year. Meanwhile, BANPU will also benefit from its subsidiary, BPP, that has been catching up with the electric vehicle trends.
KGI Securities at the beginning of the month rated BANPU “Outperform” with a target price at ฿13.00/share after revising earnings estimates by 43% to Bt7.95bn in 2021 and 35% to Bt6.3bn in 2022 thanks to a higher coal price and lower coal cost.
KGI adjusted up its assumption for coal price for 2021/22 from US$75/70/ton to US$80/75/ton with an unchanged long-term price of US$70/ton, supported by La Nina weather and the global economic recovery this year.