In today’s briefing:
- CENTEL: Brighter Outlook in 2022 and Beyond
- HANA: 2022 Net Profit to Grow Despite Additional Costs
- HMPRO: Store Expansion to Support 2022-23 Growth
- CHG: Gradually Back to Organic Growth
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
HANA: 2022 Net Profit to Grow Despite Additional Costs
- 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.
HMPRO: Store Expansion to Support 2022-23 Growth
- 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
CHG: Gradually Back to Organic Growth
- 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.
Before it’s here, it’s on Smartkarma
