Kaohoon’s Top News on October 19, 2020

– The Ministry of Finance has no objection over the 30-year concession extension for BTS Group on the BTS Green Line and will propose the Thai cabinet soon. Meanwhile, BTS Group also accepted the terms and conditions to limit its fare at 65 baht as well as taking in over 100 billion baht of debt from the Bangkok Metropolitan Administrator.

Analysts saw positive signals for recovery in BTS’ share price, coupled with the extension of Green Line concession, giving a pair value at ฿10.80/share.

– The Bank of Thailand (BOT) expected to end its temporary debt suspension measure on October 22 in concerns of the stability in the financial system  as the liquidity from debt repayment and interest income could be lost by 200 billion baht per year, while the extension could support debtors’ behaviour in a negative way regarding payment discipline.

– WEH announced its dividend payment at ฿1.40/share, marking the first dividend payment in 11 years. The company reported its 2H20 earnings at 1,300 million baht and published a five-year plan to expand its production capacity to 1,500MW from the current 717MW. Moreover, the company is expecting to complete the deal for 600-800MW power plant in Taiwan and Vietnam with an investment of 12 billion baht.

– PTG is expected to book higher profit sharing from “Palm Complex” as the project had a full-year operation this year with an estimated revenue in 2020 around 5,000-6,000 million baht. The company is expecting to list PPP Green Complex (PPPGC) in the Thai stock market.

– PTT made a cost-cutting business plan for refineries in TOP, PTTGC and IRPC as the oil demand has yet to recover and the prolonged lower consumption for airlines could continue. Nevertheless, PTTEP, OR and GPSC still continued their growth.