Dividend Announcement Boosts TOP’s Share by 6%

The share price of Thai Oil Public Company Limited (TOP) edged 6% higher at the opening after the company announced an interim dividend payment of 0.60 baht.

As of 11:45 local time in Thailand, TOP rose ฿2.25/share or 4.69% to ฿50.25/share, with a trading value of 969 million baht. 

TOP’s Board of Directors meeting on August 27, 2021 approved the interim dividend payment to the shareholders from the company’s business performance in the first half of 2021 at the rate of 0.60 baht per share, with XD (Exclude Dividend) sign posted on September 9, 2021 and dividend payment date set for September 23, 2021.

Asia Plus Securities (ASPS) has given a “BUY” recommendation on TOP, with a target price of 55.00 baht, citing a rebound is expected in 4Q21 because refinery business will enter a high season (winter) and oil demand (for transportation) will recover after COVID-19 subsides, even though aromatics and lubricant businesses would drop in 2H21. Valuation is favorable after correction, but TOP is still weakened by low demand amid COVID-19.