BCP gained 4% on Friday trading after the Board of Directors approved the spin-off of its subsidiary BBGI.
As of 15.55 hrs. local time in Thailand, the share price of Bangchak Corporation Public Company Limited (SET: BCP) rose THB1.00/share or 3.7% to THB28.00/share, with a trading value of THB174 million.
BCP announced that the Board of Directors meeting held on 27January 2022, has resolved to approve the framework and procedures for determination of the company’s shareholders that are entitled to subscribe newly-issued ordinary shares of BBGI in proportion to their shareholdings (Pre-Emptive Rights), and has resolved to schedule the record date for the list of shareholders entitled to subscribe the said newly-issued shares of BBGI.
In this regard, BBGI shall offer and allot its newly-issued ordinary shares in the total number of 64,980,000 shares to the company’s shareholders and shall not offer and allot such newly-issued ordinary shares to a person or subscriber if (a) such undertaking causes or may cause BBGI to have obligations under foreign laws in addition to actions required by Thai laws or regulations related to issuance and offering of securities in Thailand; or (b) such undertaking shall not be in compliance with provisions, procedures, or conditions of the allocation or offering of shares.
KGI Securities forecast BCP to report 4Q21F earnings of THB2.0 billion (+684% YoY, +8% QoQ). The jump YoY would be supported by a higher stock gain of THB1.3 billion for the quarter, improving from a stock loss of THB8 million in 4Q20. Meanwhile, the small increase in QoQ would come from a significantly better base GRM that would be mostly offset by no large extra gains of THB696 million like in 3Q21. BCP’s base GRM is expected to soar 103% QoQ to US$6.2/bbl in 4Q21 thanks to bigger gasoline, jet oil, and diesel spreads.
KGI maintains a rating of Outperform on the counter with an unchanged 2022 target price of THB35.00, based on SoTP methodology, believing that the share price will be supported by higher anticipated earnings in 4Q21 and the upcoming listing of BBGI on SET.
