A stock expert from KGI Securities (Thailand) recommends “buy” shares of PTG Energy Public Company Limited (PTG), assessing the trend of net profit in 2023 to reach 994 million baht, an increase of 6% over the same period last year. Net profits for the fourth quarter of 2023 are expected to exceed 500 million baht, supported by increased oil and non-oil business sales volume, while 2024 profits are estimated at 1.3 billion baht, an increase of 34%, with a new target price at 11.50 baht from 10.40 baht.
KGI Securities (Thailand) Limited publishes analysis and estimates the trend of net profit in 2023 for PTG Energy Public Company Limited (PTG) shares at 994 million baht, an increase of 6% compared to the same period last year. Because net profit for the fourth quarter of 2023 is expected to be higher than 500 million baht (from a net loss of 4 million baht in the fourth quarter of 2022 and a net profit of 19 million baht in the third quarter of 2023) and the profit increase is expected to come Of the sales volume, the volume of oil increased to 1,550 million liters, an increase of 10% compared to the same period last year. And last quarter, including oil marketing fees, which rose to 1.90 baht/liter, an increase of 20% over the same period last year and 14% compared to the previous quarter.
The research team also expects non-oil business profits to increase compared to the previous quarter. Because sales of Max Mart and Panthai cafés increased as the number of cars coming to use PTG brand gas stations increased in the fourth quarter of 2023.
The research department maintains its 2024 earnings forecast at 1.3 billion baht, an increase of 34% compared to the same period last year. This is mainly due to the increase in oil sales volume. Assuming that the volume of oil sales will increase by 6% compared to the same period last year to 6,300 million liters next year. From the recovery of Thai tourism, after KGI Tourism Group analysts estimated that the number of foreign tourists in 2024 will rise by 16% compared to the same period last year to 32 million from 27.5 million in 2023.
Next year’s oil marketing margin is also expected to reach 1.70 baht/litre, which is the lower limit of the normal level (1.70-1.80 baht/litre) because crude oil prices are likely to decline next year and face less pressure from tight control over marketing costs. Gasoline in Thailand, although the Minister of Energy is rushing to study and amend the relevant laws. To control the cost of marketing all types of oil to no more than 2.00 baht/litre, the research team believes that the price of Dubai crude oil, which fell from $93 per barrel in September to $75 per barrel at the present time, will help. Reducing the pressure caused by strict control of gasoline marketing costs for gas station operators in Thailand because the retail price of gasoline fell a lot after the decline in the price of crude oil. The process of studying and amending relevant laws also takes a long time.
Therefore, the research department revised the target price for 2024 to 11.50 baht from the original 10.40 baht to reflect an estimated 2024 profit growth rate of 34% compared to the same period last year. The buy recommendation increased hold as earnings are expected to increase in the fourth quarter of 2023 and face less pressure from tighter controls on gasoline marketing prices in Thailand. After the decline in the price of Dubai crude in this quarter.
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