Analysts Rate “BUY” on BGRIM for a Stronger Outlook in 2Q21.
Analysts recommended a "buy" rating on B. Grimm Power Public Company Limited (BGRIM), anticipating a stronger 2Q21 performance. 
Analysts recommended a "buy" rating on B. Grimm Power Public Company Limited (BGRIM), anticipating a stronger 2Q21 performance.
25 พ.ค. 2564

Analysts recommended a “buy” rating on B. Grimm Power Public Company Limited (BGRIM), anticipating a stronger 2Q21 performance supported by solar projects in Vietnam, a rise in domestic  industrial customers (IU), as well as the selling of electricity to the Electricity Generating Authority of Thailand (EGAT) and the omission of power plant maintenance shutdowns. Additionally, they agreed that BGRIM had already bottomed out the worst in 1Q21.
The normal profit margin in the second half of 2021 is expected to remain close to the first half of this year level. Due to the revenue recognition of the Bo Thong 1&amp;2 projects, together with the COD for the U-Tapao solar project in the second half of this year.
Following the award of the LNG-Shipper license, BGRIM anticipates that the first LNG imports will begin in the second half of this year. Revenue from LNG imports is expected to cover a rise in natural gas prices in the second half.
Additionally, BGRIM is expected to acquire 1-2 additional projects this year in order to achieve its target of increasing production capacity to 2,500-3,000 MW from 1,900 MW currently. The company’s executives are undergoing a feasibility study to determine the viability of investing in domestic and international businesses.
 
Asia Plus Securities (ASPS) said that BGRIM’s 2Q21 profit is expected to grow in the high season. Meanwhile, 2021 normalized profit is expected to grow 21.5% YoY. Average gas cost would drop. Projects that started commercial runs in 2020 will make income  for a full year. Plus, new projects (29.8 MWe) will start commercial runs. 2Q21 normalized profit is  projected to grow further. Power sales to EGAT would grow in the high season. Unlike 1Q21, no power plant will be shut down for maintenance in 2Q20. Plus, income from Bo Thong 1&amp;2 (14.8 MWe) will be booked for the first quarter.
New projects would extend the profit base. BGRIM’s profit is expected to grow further in the next three years. Having 23% upside, gradually accumulate. A given target price is 52 baht per share.
 
Country Group Securities (CGS) anticipated BGRIM’s results to strengthen in 2Q21 compared to the prior quarter. This is a result of the improved performance of the solar project in Vietnam and the growth of the IU customer base in Thailand.
At the same time, performance in 2021 remains optimistic, with earnings per share amounting to 19% when compared to the previous year. This is based on the full-year profit and partial profit from the combined148 MW projects that are scheduled to be completed in 2021, as well as the increasing gross margins of SPP power plants.
Additionally, the company intends to double its investment portfolio to 7.2 gigawatts by 2025, with new ventures planned in the second half of the year. There was an upside of 2.4 baht per share. A given target price is 55 baht per share.