The Rebound of BEM Shares: A Sign of Economic Recovery
Amidst a period of economic recovery and the resurgence of Thai tourism, shares of Bangkok Expressway and Metro Public Company Limited (BEM), the provider of expressway services and project management for the MRT Blue Line and Purple Line, are experiencing a notable reversal. The company’s operating results for the third quarter of 2023 reflect a significant growth in revenue and net profit, indicating a promising trajectory for the organization.
Financial Performance
During the third quarter of 2023, BEM reported a revenue of 4,448 million baht and a net profit of 970 million baht, marking a 12% increase from the previous year. The overall net profit for the first nine months of 2023 amounted to 2,620 million baht, representing a substantial growth rate of 43% compared to the same period in the previous year.
Looking at the individual business groups within BEM, it is evident that all segments have shown robust growth in revenue. The expressway business generated 2,252 million baht in the third quarter, driven by an increase in the number of vehicles using the expressways. Revenue from the MRT business amounted to 1,651 million baht, with significant growth in fare revenue from the Blue Line and income from operating the Purple Line as per the concession contract. The commercial development business also contributed 279 million baht in revenue, primarily from renting advertising media space and retail space at Metro Mall.
Positive Market Outlook
The net profit of 970 million baht in the third quarter of 2023 represents a milestone for BEM, signaling a return to pre-pandemic levels of profitability. Analysts at Liberator Securities have expressed confidence in the company’s recovery, particularly in the electric train business, citing the benefits from the Yellow Line and the reopening of the Queen Sirikit National Convention Center.
With the company’s record-high profit and positive developments, analysts at TISCO Securities and Bualuang Securities have also expressed optimistic views on BEM’s growth prospects. TISCO Securities emphasized the company’s fundamental strength and growth potential, setting an underlying target price of 10.60 baht per share. Meanwhile, Bualuang Securities sees investment opportunities in BEM’s expansion of transport infrastructure, recommending a “Buy” rating with a target price of 12.40 baht per share.
As BEM’s performance continues to strengthen, it remains an attractive option for investors seeking large defensive stocks with high growth potential, especially as the stock market recovers. With positive endorsements from analysts, BEM is poised for further growth and success in the coming years.
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It is in the period of reversal to a period of growth again for the shares of BEM or Bangkok Expressway and Metro Public Company Limited, the provider of expressway services and project management of the mass transit system, the MRT Blue Line and the Purple Line projects. which coincides with the general economic recovery and Thai tourism.
After reporting the operating results of the third quarter of 2023, the company generated revenue of 4,448 million baht and had a net profit that continued to grow at 970 million baht, an increase of 12% compared to the same period last year. As a result, the overall picture for 9 months 2023 increased BEM’s net profit to 2,620 million baht, which represents a growth rate of 43% compared to the same period last year.
Looking into the details of BEM’s 3 main business groups, which are the expressway business Rail or MRT business and commercial development business It can be seen that they all generate strong growth in each business group.
Led by revenue from the expressway business, which in 3Q23 amounted to 2,252 million baht, an increase of 106 million baht from the same period last year. Due to the increase in the number of vehicles using all the expressways. The average is 1.11 million journeys per day. Especially the Si Rat Expressway, Sections B and Section D. which is the route that connects to Suvarnabhumi Airport
Revenue from the railway system or MRT business came to 1,651 million baht, an increase of 300 million baht from the same period last year. Divided into fare revenue from the Blue Line, which increased by 243 million baht, with daily users of all types averaging 410,590 trips per day, revenue from hiring for operating the Purple Line increased by 57 million baht, which is as stated. in the concession contract
Finally, the income of the commercial development business amounted to 279 million baht, an increase of 37 million baht from the same period last year. Due to the increase in income from renting advertising media space. and renting retail space at Metro Mall
The net profit figure of 970 million baht in the 3rd quarter of 2023 is the highest quarterly record since 2019, which was before the outbreak of COVID-19. It reflects that BEM’s business direction has started to return to the rhythm of recovery again.
An analysis of Liberator Securities (Liberator) is of the opinion that, although the stock market is slow, But the quality of BEM’s profits has not decreased. But he recovered satisfactorily. Especially the electric train business that benefits from the Yellow Line. and the Queen Sirikit National Convention Center returning to service
About this year’s work The company is showing great developments. With a record high profit, which the analysis team estimates this year’s profit to be 3,700 million baht, it is considered that in the time the stock market recovers, large defensive stocks with high growth such as BEM are still an option interesting , recommends a “buy” price. Target 10.90 baht per share
While TISCO Securities said BEM is an outstanding fundamental stock. After reporting a 3Q23 profit of 970 million baht, which was better than we and the market expected. Due to the growth in income in all businesses Along with the opening of the yellow electric train service and the government’s policy to reduce prices on the purple-red line. That helps draw more people into the mass transit system, giving it an underlying target price of 10.60 baht per share.
Similarly, Bualuang Securities revealed that it sees investment opportunities for BEM in developing its business through the expansion of transport infrastructure in Thailand. He also has a positive view on the company’s short-term and long-term growth prospects. Therefore, he recommends “Buy” BEM stock with a target price of 12.40 baht per share and considers it the best option for stocks in the shipping business group. .
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