ThailandSynthetic Biology (non-pharma)▲
DBS Vickers names 11 stocks set to benefit from state cuts to biofuel taxes
DBS Vickers Securities Thailand said in an analysis that the Thai government is considering cutting excise taxes on biofuels to lower fuel prices and spur consumption. Currently, the excise tax on gasohol stands at 6.00 baht per litre and on biodiesel at 5.953 to 6.92 baht per litre. Raising the share of biofuels in use would help cut crude oil imports and ease the government's burden of subsidising fuel prices, with the Oil Fund now running a loss of about 100 billion baht. With demand for ethanol and biodiesel expected to rise, DBS Vickers has named 11 Thai stocks set to benefit, divided into three groups by business type. The first group is direct producers and distributors of biofuels, namely BBGI, EA, UBE, GGC and TAE. The second group is integrated palm oil producers linked to biodiesel, namely PCE, SMO, APO and VPO. The third group is sugar producers linked to ethanol, namely KSL, KTIS and BRR.
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BBGI.BK · Demand · Positive Named as a direct producer/distributor of biofuels expected to gain from higher ethanol and biodiesel demand after excise tax cuts.
BRR.BK · Demand · Positive Named in the sugar producer group linked to ethanol, set to benefit as biofuel tax cuts spur ethanol demand.
EA.BK · Demand · Positive Named as a direct producer/distributor of biofuels expected to benefit from rising ethanol and biodiesel demand.
GGC.BK · Demand · Positive Named as a direct producer/distributor of biofuels set to benefit from increased biofuel demand after the tax cuts.
APO.BK · Demand · Positive Named in the integrated palm oil producer group linked to biodiesel, set to benefit as biofuel tax cuts lift biodiesel demand.
KSL.BK · Regulation · Positive Named in the third group of sugar producers linked to ethanol set to benefit from the government's planned biofuel excise tax cuts.