Thailand: Central Plaza Hotel, Hana Microelectronics, Home Product Center, Chularat Hospital and more

In today’s briefing:

CENTEL: Brighter Outlook in 2022 and Beyond

Analyst meeting came out with a positive tone. We expect 2022 EBITDA to grow by 78%YoY supported by strong recovery in hotel businesses especially in Maldives and Dubai.We maintain BUY
4Q21 EBITDA reached the highest level since 1Q20 at Bt977m (+113%YoY, +307%QoQ) backed by strong recovery of hotel performance especially in Maldives and Dubai.
The company plans to open39 new hotels with 8,038 rooms by 2025 and 200-250 new food stores of existing brands and JV brands in 2022 which could support earnings momentum

Analyst meeting came out with negative tone. The company’s Korean SiC segment will continue to incur costs throughout 2022.However, the 45% tumble in share price since Nov’21 factored in negative
We expect 22E core profit will remain flat YoY at Bt2.3bn. Additional costs and microchip shortages will offset the growth from capacity expansion.
Bleak outlook until 3Q22. Additional costs will drag core earnings until 3Q22. Current share prices are cheap and provide opportunity for share accumulation.

Yesterday analyst meeting came out with a positive tone. We reiterate our BUY rating for HMPRO with a target price of Bt17.0(+5%from previous TP),which is derived from 35xPE’22E, a 40%
In 2022, HMPRO plans to open 6 stores comprise of one store for Homepro large store format and 5 stores for Mega home and one HMPRO’s store re-location.
We believe that SSSG continues to positive at 5%in 2022 and 4% in 2023 supported by new products launch together with promotional activities such as Homepro Day, Homepro Super Expro

Downgrade to HOLD with a TP of Bt3.90,based on 15xPE’22E, which is close to -2SD of its 10-years trailing mean. In our view,the rating does not warrant a premium valuation
Its 4Q21 net profit figure was at Bt1.8bn, (+615%YoY, +16% QoQ), YoY growth is backed by margin expansion from Covid-related revenue and efficient cost control.
CHG’s 2021 net profit was at B4.2bn (+380YoY) thanks to solid revenue growth (+116%YoY) and wider margin (+18ppts), helped by Covid-related services.

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