TISCO Securities has turned positive on Star Petroleum Refining (SPRC) following strong first-half results. The brokerage has raised its 2026-2028 earnings estimates by 21%, 29%, and 18%, respectively, and lifted its fair value to 14.90 baht from 12.50 baht, maintaining a "Buy" recommendation. TISCO believes the refining market still has supportive factors, even though refining margins are likely to soften from current levels, they remain above mid-cycle averages. TISCO Research has also increased its 2026 dividend per share estimate to 1.55 baht from 1.15 baht, reflecting the minimum payout policy of 50%, implying a dividend yield of approximately 8.0%. TISCO views SPRC as having the most attractive dividend yield in the group with limited downside. Management has indicated that the 2026 interim dividend of 0.50 baht per share could be considered the minimum for the full year until the next maintenance shutdown in 2030. Despite the stock outperforming the market over the past three months, rising 78.4% compared to the SET's 1.7% gain, TISCO still sees upside. Currently, SPRC trades at a 2027 EV/EBITDA of 4.8 times, about 11% below its historical average.
Star Petroleum Refining Co LtdTISCO raised SPRC's 2026-2028 earnings estimates and fair value to 14.90 baht, maintaining Buy on strong H1 results and an 8% dividend yield.
