STOCK FOCUS
Banpu Plc
SCB Securities has maintained its "long-term buy" rating for Banpu stock, with a target price of Bt169.
BLCP, a 1,434-megawatt coal-fired power plant at Map Ta Phut in Rayong province, is expected to be a primary driver behind Banpu's core profit growth next year. Banpu has a half-share in BLCP.BLCP's first 717-megawatt generating unit will come on stream tomorrow and the second will follow in November, ahead of schedule. Initial sales of electricity will not add to Banpu's profit, as the selling price just covers costs. But when full operations begin in February, the broker estimates BLCP's contribution will be Bt2.06 billion, nearly 40 per cent of Banpu's expected profit in 2007. The other half of BLCP is owned by CLP, and the broker believes it will agree to sell it to Electricity Generating Plc (Egcomp) before the first equity payment is due in November to avoid sourcing funds for the payment. Egcomp is expected to call a meeting of its shareholders in mid-October to approve the purchase, which will give BLCP a new shareholder structure. The change should have no impact on BLCP's operations, because Egcomp is one of Thailand's biggest power operators. Banpu's stake in BLCP is expected to contribute Bt200 million in 2006 and Bt2.06 billion in 2007.
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