On Wednesday at 10:28 AM (Bangkok time), the share price of Banpu Public Company Limited (SET: BANPU) jumped by 2.59% or THB 0.15 to THB 5.95, with a trading value of THB 173.37 million.
Thanachart Securities noted that BANPU’s stock value took a hit, dropping by 17% after the company reported lackluster performance in the third quarter of 2024 due to declining coal prices in Australia, lower coal sales volume, and higher-than-expected tax expenses.
Consequently, the analyst revised down BANPU’s earnings projections for 2024 and 2025 by 62% and 10%, respectively, and adjusted the target price from THB 8 per share to THB 7.5 per share based on the 2025 forecast. Despite this, the analyst retained a ‘BUY’ recommendation on BANPU, foreseeing a potential recovery in the share price in the fourth quarter of 2024, driven by increasing gas prices, elevated coal prices, and improved cost management. The analyst predicted a substantial earnings rebound of 426% in 2025 and an additional 21% in 2026 for the company.
In addition, Thanachart Securities forecasts a notable rebound in BANPU’s earnings, projecting an increase from THB 2 billion in the current year to THB 6.6 billion by 2026. This growth is anticipated to be driven by escalating gas prices, a 3% yearly rise in coal volume, and stable coal prices. Moreover, a decrease in costs per unit is expected due to enhanced utilization rates, better cost management, and backing from expanded carbon capture, utilization, and sequestration projects.
