In today’s briefing:
- BGRIM: Rising Gas Cost to Drag SPP Margins in 1H22
- Central Plaza Hotel (CENTEL.BK) – Turning Profitable
- Minor International (MINT.BK) – Strong Fy22 E Turnaround
- TOA: Squeeze Margin Pressured 1H22 Earnings
BGRIM: Rising Gas Cost to Drag SPP Margins in 1H22
- The analyst meeting came out in a negative tone, as the projected rise in gas cost will pressure the SPP margins and drag the earnings in 1H22.
- We expect 1Q22 recurring profit to soften due to continued rise of fuel cost. The earnings should bottom out in 1H22 and pick up gradually 3Q22 onwards.
- The SPP gas price has rose to Bt336/ MMBTU in 4Q21 compared to Bt268/MMBTU in 3Q21.According to management guidance the gas prices are further expected to rise near Bt450/MMBTU level
Central Plaza Hotel (CENTEL.BK) – Turning Profitable
- U/G to BUY on expected aggressive expansion
- SSSG+12%, restaurant sales only 6% below FY19
- RevPar to double YoY in FY22E
- Key risks are Ukraine conflict and rising food costs
Minor International (MINT.BK) – Strong Fy22 E Turnaround
- Upgrade to BUY on hotel and restaurant rebounds
- Prominent hotel recovery in Europe with risks
- Positive same-store sales, with no more lockdowns
- Key risks are Covid and rising food costs
TOA: Squeeze Margin Pressured 1H22 Earnings
- Yesterday analyst meeting came out with a negative tone.We expect TOA net profit in 1H22to weaken YoY due to an increase in raw material cost in spite of upward selling
- We expect earnings drop both QoQ and YoY in 1Q22 caused by squeezed GPM from rising raw material cost. In contrast,revenue will be expanded YoY supported by demand for painting
- We revised down 2022-23 earnings by 3-7% in 2022-23E to factor in further decrease in gross profit margin caused by a rise in material cost following spike in oil price.
Before it’s here, it’s on Smartkarma
