In today’s briefing:
- EPG: Expect Earnings to Remain at High Base, but Growth Is Limited
- HMPRO: Expect Strong Earnings Growth YoY in 1Q22
EPG: Expect Earnings to Remain at High Base, but Growth Is Limited
- We reiterate BUY rating for EPG but trim down target price to Bt12.60, (Previous TP:14.30) derived from 21xPE’FY23E, (5-year average) or 90% premium to materials sector. We reduce PE multiple
- Expect the company to post 4QFY22 (Jan-Mar) core profit at Bt398m (+7%YoY -2%QoQ)
- Solid demand for automotive-parts in Thailand and Australian. Concern over rising raw material remain under control at least in the next two quarter
HMPRO: Expect Strong Earnings Growth YoY in 1Q22
- With a limited upside to our target price and concern over decreasing people purchasing power following a rise in inflation, we downgrade our recommendation from BUY to HOLD
- We expect HMPRO to report 1Q22 net profit at Bt1.49bn (+9%YoY, -16%QoQ),
- YoY growth will be supported by solid demand for WFH products, government stimulus scheme (Shop Dee Mee Khuen in Jan –15 Feb 2022), and solid revenue growth from Mega Home
Before it’s here, it’s on Smartkarma
