Banpu

BANPU Plc

After acquiring coal assets in four countries, Banpu will be shifting its focus from the discovery of coal reserves to the delivery of coal. Given sustained high coal prices, we expect earnings growth to improve as its production rises, catalysing its share price. Banpu’s earnings growth from locked-in coal sales and rising volume should continue to power its stock. As production from new mines is delivered, risks should subside, leading to a valuation re-rating. Maintain earnings, OUTPERFORM and SOP target price.