Krungsri Keeps Buy on BEM, Target 8.80 Baht, Eyes Record 2026 Profit of 3.9 Billion

Kaohoon··TH·Read original
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Krungsri Securities stated in an analysis that it maintains a positive view on Bangkok Expressway and Metro, or BEM, even though flooding in Bangkok and its vicinity has affected traffic and the Expressway Authority of Thailand has extended the toll waiver by another 2 days to September 28-29, 2026, from the original September 26-27, bringing the total toll waiver period to 4 days and covering the Chalerm Maha Nakhon Expressway, the Si Rat Expressway, the Prachim Ratthaya Expressway, and the Udon Ratthaya Expressway, all of which are managed by BEM. Discussions with BEM's management found that revenue potentially lost from the 4-day toll waiver will be compensated by the government, though the form of compensation, whether cash or another arrangement, is still under discussion, as is the timeline for disbursement. The analyst views the chance that BEM will not receive full government compensation as low, and based on a sensitivity analysis, if it were assumed that no compensation is received at all, the company would lose about 100 million baht in revenue, or roughly 2% of total revenue in the third quarter of 2026 and about 0.6% of total revenue for all of 2026. Meanwhile, rising subway passenger numbers during the floods are helping offset some toll revenue. The analyst therefore maintains the 2026 net profit forecast at 3.9 billion baht, up 3% from the previous year, and keeps a Buy recommendation with a target price of 8.80 baht per share, viewing the stock as still attractive on valuation grounds with the impact of the toll waiver measures remaining limited.

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Krungsri Securities Public Company LimitedPrivate± Mixed
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Krungsri Securities is the analyst issuing the Buy rating and target price, not a subject of the news.

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