PTG Gains 2.5% as the Analyst Projects a Quarterly-Record High in 4Q20 at ฿532Mn

KGI Securities has given an “Outperform” rating on PTG Energy Public Company Limited (PTG) with a target price at ฿21.20/share, expecting PTG’s earnings in 4Q20 to make a quarterly record high at 531 million baht, an increase of 49% YoY and 4% QoQ.

 

The increase of PTG’s earnings in YoY would be the result from the significant increase of marketing margin from 1.75 baht per liter in 4Q19 to 1.90 baht per liter in 4Q20. Meanwhile, the QoQ increase would be due to an increase of 6% in oil sales and an equity income from biodiesel that increased 270% to 123 million baht.

However, KGI revised down PTG’s target price from 21.40 baht to 21.20 baht, based on the lowering in P/E from 20x to 19x to reflect the slowdown of profit growth ratio to 6% this year and the listing or PTT Oil and Retail Business Company Limited (OR) that will go straight to SET50, while PTG remained in SET100.