Waraporn Wiboonkanarak

Krungthai XSpring

Equity Bottom-Up

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<p>Company Update</p>
<h2>Seafco Plc. (SEAFCO)</h2>
<p>Construction Services</p>
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<h3>Downbeat 3Q20 earnings; 2020-21E forecasts trimmed</h3>
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<p>The slowdown in the piling business due largely to delays in state and private projects has heightened the degree of market competition, while COVID-19 has led to labor shortages. These negative factors have put pressure on SEAFCO’s margin and revenue growth outlook. We have therefore revised down our 2020-21E earnings forecasts by 30-45%, resulting in a new target price of…</p>
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<p>Company Update</p>
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<h2>Seafco Plc. (SEAFCO)</h2>
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<p>Construction Services</p>
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<h3>3Q20E earnings to fall; 2020-21E forecasts revised down</h3>
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<p>Despite having some backlog on hand, SEAFCO’s 3Q20E earnings may be pressured by labor shortages as a result of COVID-19. Meanwhile, the overall piling business is likely to decelerate in line with the slowdown in private and state projects. Under these circumstances, competition will intensify, keeping the firm’s margin under pressure. We have therefore revised…</p>
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<p>Company Update</p>
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<h2>Seafco Plc. (SEAFCO)</h2>
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<p>Construction Services</p>
<p><strong>2020E earnings likely to fall by 14% YoY due to expected narrower margin</strong></p>
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<p>The piling business is likely to face more intense competition due to delays of state and private projects, which will put the firm’s margin under pressure. Therefore, the 2020E earnings are expected to fall by 14% before recovering by 20% in 2021E. Meanwhile, the 2Q20E earnings are projected to decline YoY. We hence reaffirm our Hold rating, with the target…</p>
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<p>Earnings Review</p>
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<h2>Seafco Plc. (SEAFCO)</h2>
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<p>Construction Services</p>
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<p><strong>1Q20 profit down YoY due to weaker GPM on more intense competition</strong></p>
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<p>SEAFCO’s 1Q20 earnings declined YoY due to a narrower gross profit margin (GPM) but recovered QoQ thanks to higher revenue. COVID-19 will result in a slowdown in new projects while the more intense competition will continue to put the firm’s GPM under pressure. We therefore maintain our Hold rating, with the target price of Bt6.20 (13x PER). It is…</p>
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<h2>Seafco Plc. (SEAFCO)</h2>
<p>Construction Services</p>
<p><strong>1Q20E earnings to have fallen YoY; earnings forecast revised down</strong></p>
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<p>The 1Q20E earnings are projected to have fallen YoY due to lower revenue and a slimmer gross profit margin (GPM). Meanwhile, the QoQ recovery may have been smaller than previously expected. The slowdown in new projects as a result of COVID-19 may intensify the competition, putting the firm’s GPM under pressure. We thus cut our 2020-21E earnings forecasts by 14% and 10%, resulting in a…</p>
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Thailand

Seafco Public Company Limited is a construction and engineering company that uses Bored Piles and Diaphragm Wall (D-Wall) and underground engineering technology to provide cost-effective solutions for foundation problems, basement construction and development of underground facilities and sub-structure works in Bangkok and other large cities.

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Dividend (Yield)	0.00