Bangchak Corporation Public Company Limited (SET: BCP) witnessed a modest rebound on Tuesday following a 14-day period of subdued performance marked by consecutive declines or stagnation in prices.
The company’s share price climbed by THB0.50 or 1.52% to close at THB33.50 per share on Tuesday as compared to the previous 14 trading days that saw a notable decrease of 12.4%. During this period, BCP reported losses for nine days, maintained stability for five days, and no positive movement.
Analysts express concerns over the impending financial report for the third quarter of 2024, anticipating significant disappointment mainly due to stock losses resulting from lower crude prices in comparison to the preceding quarter.
Despite this outlook, a majority of analysts remain optimistic about BCP, focusing on the company’s core profits in Q3 and foreseeing a rebound in earnings in the fourth quarter. This optimism is driven by expectations of increased operational efficiency and a one-time profit boost from the sale of a 15% stake in Yme Petroleum Field to Lime Petroleum AS.
Krungsri Securities forecasts a net loss of approximately 2,062 million baht in 3Q24, primarily attributable to a huge stock loss of around 5,100 million baht. However, the core business is anticipated to remain stable or demonstrate slight growth quarter-over-quarter. The firm projects a return to profitability in 4Q without any stock loss. Still, 3Q24 higher-than-expected stock loss prompts a revision of the target stock price from THB49.00 to THB46.50 per share, which still represents a potential upside of 40% from the current trading price.
Among 19 brokerage firms surveyed by SETTRADE, 17 recommend a ‘BUY’ rating for BCP shares, while two advocate a ‘Hold’ stance. The consensus target price stands at THB45.91 per share, with the LSEG consensus aligning closely at THB47.20 per share.
