In this briefing:
1. NYT: Property Tax Expense Pressured 4Q18 Earnings to Its Trough in 2018
NYT reported 4Q18 net profit of Bt90m (-11%YoY, -24%QoQ), the lowest level in the past eight quarters. The 2018 result was in-line with our forecast.
- A drop in 4Q18 earnings was caused by one-time expense on property tax, which we expected at around Bt10-13m.
- 4Q18 revenue also remained flat at Bt368m (-1%YoY, +3.5%YoY) as number of vehicles that passed through the A5 terminal slightly dropped along the country’s car export unit to 281,853 units (-3%YoY, -5%QoQ).
- The company announced Bt0.30 of annual dividend or equivalent to 5.7% (XD on 3th of May 2019)
We maintain our 2019-20E earnings forecast and still rank NYT as a BUY with a target price of *Bt7.60 based on DCF (8.8%WACC, 1%TG) which implies 20xPE’2019E
*We make no changes to forecast, recommendation, and target price at the time of result announcement.
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