Three Thai coal equities soared on Wednesday’s morning as tight supply continues to push Newcastle coal futures price higher.
At 10.50 hrs. local time in Thailand, the share price of Banpu Public Company Limited (SET: BANPU) rose THB0.30/share or 2.65% to THB11.60/share, with a trading value of THB910 million.
The share price of Thai Capital Corporation Public Company Limited (SET: TCC) rose THB0.10/share or 8.93% to THB1.22/share, with a trading value of THB119 million.
The share price of The Lanna Resources Public Company Limited (SET: LANNA) rose THB0.60/share or 3.35% to THB18.50/share, with a trading value of THB109 million.
Krungsri Securities said that tight coal supply and port congestion should keep NEX Index high in 1H22, as the company anticipates weaker coal sales volume than expected in 4Q due to La Nina, resulting in a net profit decline of -22% QoQ to THB2.7 billion (vs THB468 million loss a year ago). KSS maintains a positive view on BANPU and expects hedging loss to fall substantially in 2022. Maintain “BUY” with a target price of THB14.00 per share.
Heavy rainfall from La Nina and Indonesia’s export ban have tightened global coal supply and pushed up the NEX Index to US$241/ton this week vs average US$191/ton in 4Q. Thus, KSS expects the rainy season in Indonesia to reduce coal production, which will keep the NEX Index above US$200/ton in 1Q22.
