Dao Securities Stated in today’s analysis (11 Sep. 2023) that Bangkok Expressway and Metro Public Company Limited or BEM Report on the number of electric train passengers in August 2023, reaching a new high of 420,000 trips/day, growing 31% compared to the same period last year, growing 8% compared to the previous month), with the average number for 8 months being 380,000 trips/day. Grew 62% compared to the same period last year, while expressway users were at 1.1 million trips/day, grew 4% compared to the same period last year, grew 2% compared to the previous month. and the average number for 8 months 2023 is 1.1 million trips/day (Source: BEM)
There is a positive view of the electric rail passenger numbers in August, which reached a new record high. which during the month reached a high of 530,000 trips/day (25 Aug.), supported by the travel sector’s continued recovery. Benefiting from the Thai Travel Thailand event at the Queen Sirikit National Convention Center between 24-27 Aug. and gradually acknowledging the positive results from the opening of the Yellow Line since 3 July, maintaining a profit. Net in 2023 at 3.7 billion baht (growing 50% compared to the same period last year)
While comparing normal profits, they will grow to a new record high for the second half of 2023. It is expected that operating results will continue to grow, compared to the same period last year, compared to the first half of this year, supported by the travel sector gradually returning to normal levels. During the high season of the tourism sector and the benefits from the opening of the Yellow Line, which will see more positive results from the 36th quarter of 2023.
However, these factors are expected to be partially offset by the trend of maintenance costs that are likely to increase following maintenance cycles. Maintain a “buy” recommendation and a target price of 10.40 baht. It is seen that the current stock price is OK. It reflects concerns about the uncertainty of the new government’s electric train fare policy. Meanwhile, the said policy still has a chance of being delayed until at least 2026 because it still takes time to study.
In addition, it is seen that BEM also has catalysts from the progress of the Orange Line project. Currently, only Rok remains. The judgment of the Supreme Administrative Court in 1 case and the progress of the Double Deck project and the Southern Purple Line contract Expect to gradually see clarity in the first half of 2024.
2023-09-11 06:21:39
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