TASCO Nearly Hits the Floor for 2nd-Straight Day over Closure of Its Main Revenue Sources
TASCO Nearly Hits the Floor for 2nd-Straight Day over the Closure of Its Main Revenue Source.
The share price of Tipco Asphalt Public Company Limited (TASCO) and Tipco Foods Public Company Limited (TIPCO) continued to move downward as the negative sentiment regarding the closure of TASCO’s oil procurement in Venezuela and the refinery plant in Myanmar lingered.
TASCO almost dropped to the floor with a plummet of ฿3.00/share of 14.71% to ฿17.40/share. Meanwhile, TIPCO, as a major shareholder of TASCO, fell ฿0.60/share or 9.68% to ฿5.60/share.
TASCO stated that the U.S. warned that the company could face a sanction if not compromised. The analyst expected an impact to TASCO’s share price as TASCO would lose around 50% of its revenue.
Finansia Syrus Securities (FSS) estimated a 30-40% downside to FY21E net profit or 500-800 million baht on TASCO over the shutdown of its crude oil procurement from Venezuela if the company failed to secure alternative crudes for its refinery.