BANPU Jumps 4% to Bt14.60 as Coal Price Reaches 10-Year High!
BANPU continued to edge higher as coal price rose to nearly 10-year high at $121.60/MT.
The share price of Banpu Public Company Limited (BANPU) closed at ฿14.60/share, increased ฿0.60/share or 4.29% with a trading value of 2,370 million baht on June 8, 2021.
The surge in BANPU’s share price continued as Coal price (Newcastle) rose to a new record in nearly 10 years at $121.60/MT
Krungsri Securities (KSS) has given a “BUY” recommendation on BANPU, with a target price of 18.00 baht per share. pointing out that a strong demand for power and tight coal supply have driven the NEX Index to US$119/t, the highest since July 2018. 26% of BANPU coal sales has been fixed, suggesting a big upside for coal sales this year. KSS raised ITM’s ASP in FY21-23F to US$82/75/70 from US$65/67/67.
The stock is under-owned given environmental concerns. KSS expected strong 2Q earnings, estimated at 2.5-2.8 billion baht, to prompt the market to upgrade the stock. Stretched balance sheet is a medium-term risk as net gearing was at 1.6x at end 1Q vs 1.75x debt covenant.
