In today’s briefing:
- CRC: Growth Momentum Intact Despite Uncertainties
- SCCC: Gradual Recovery Intact
- KTB: Steady Growth with Resilient Asset Quality
- ORI: 1Q22 Earnings In-Line with Our Forecast
- SPRC: Positive 2Q22 Outlook from GRM Uptrend
CRC: Growth Momentum Intact Despite Uncertainties
- Last week analyst meeting came out with neutral tone.We reiterate our BUY rating for CRC with a target price of Bt43.0,based on DCF (WACC of 8.2% and TG of 2%)
- Management maintained its key 2022 financial guidance. CRC targeted 2022 sales growth of 15%-20%YoY, mainly from fashion business and targeted GPM retail sales to expend by 100-120bps YoY.
- •CRC showed three measures to mitigate the effect from uncertainties under global issue such as(1)cost optimization by controlling OPEX growth to not be higher than 50% of total sales growth
SCCC: Gradual Recovery Intact
- Maintain BUY rating with a new TP of B185.00 (down 9% from previous TP) derived from 13.2xPE’22E which is close to -1SD of 10-years trading average.
- Excluding extraordinary items, 1Q22 core profit was at Bt1.5bn (+45%YoY, +20%QoQ), The YoY rose on solid revenue growth (+21%YoY), and equity income (+23%YoY).
- We expect earnings trend to gear down QoQ in 2Q22, drag by mounting cost pressures behind the surging input costs upon the unfavorable macro dynamics and seasonality.
KTB: Steady Growth with Resilient Asset Quality
- Maintain BUY with a higher target price of Bt16.70. Our BUY call reflects steady net profit growth,resilient asset quality, and attractive valuation.Our valuation is derived from the Gordon growth model
- Management maintained its key 2022 financial guidance. It affirmed that the KTB’s coverage ratio was high enough to withstand uncertainties and there was room to reduce provisions ahead.
- We increased our net profit forecast by 5-9%for 2022-24 to reflect our lower provision estimates.We expect KTB’s net profit growth to be solid at 19%YoY in 2022 and continue rising
ORI: 1Q22 Earnings In-Line with Our Forecast
- ORI’s 1Q22 net profit was at Bt 738m (-11%YoY, -9%QoQ),in line with our forecast. Excluding special items from sell of investment at Bt 297 m,normal profit was at Bt441m (-37%YoY,-27%QoQ).
- The dropped in YoY and QoQ of net profit was pressured by lower revenue recognition from real estate sales in non-JV project toBt3.04bn(-12%YoY,-11%QoQ)and the loss from equity income at Bt48m
- Expect 2Q22 earning to improve QoQ supported by revenue recognition of Park Origin Thonglor JV project worth Bt12bn and two non-JV condominium project worth Bt1.16bn.
SPRC: Positive 2Q22 Outlook from GRM Uptrend
- Analyst meeting came out with a positive tone. We expect the refinery margin continue to improve in 2Q22 led by solid gasoline, diesel and jet fuel spread.
- The 1Q22 net profit spiked to an all time high of Bt5.3bn (+164% YoY, +185% QoQ), supported by higher GRM and Sales volume.
- We expect 2Q22 recurring profit to improve on the back of rising GRM due to Russia oil supply disruption and strong oil demand as air travel resumed after COVID impact.
Before it’s here, it’s on Smartkarma
