In today’s briefing:
- GJ Steel: Nippon Steel’s Offer Opens On The 23 February
- TRUE: 22E Net Profit Will Continue to Be at a Loss, Despite Management’s View
- AWC: Long-Term Earnings Growth Profile Remains Intact
- OR: Positive 2022 Outlook from Revamping Oil and F&B Sales
GJ Steel: Nippon Steel’s Offer Opens On The 23 February
- Both G J Steel PCL (GJS TB) and G Steel (GSTEL TB) have announced Form 247-4, the Notification on Receipt of the Tender Offer for Securities, from Nippon Steel.
- As expected, the Offer period is for 25 days, between 23 February and 29 March. The payment is the 31 March.
- GJS is trading tight to terms. The Offer is unconditional.
TRUE: 22E Net Profit Will Continue to Be at a Loss, Despite Management’s View
- Conference call came with positive tone on 22E performance. Upgrade to HOLD rating with TP of Bt5.09 based on the tender offer price under the DTAC merger. However
- TRUE’s stock price crashed yesterday as investors have sold on fact of merger progress. We will revise our forecast once management of TRUE reveals detailed plans regarding the merger.
- Maintain our 22E forecast that TRUE will not be profitable, despite improvements. TRUE’s management expects to turn a profit in 2022. However, we do not believe that the revenue growth
AWC: Long-Term Earnings Growth Profile Remains Intact
- Expect EBITDA-break-even period for hospitality business by the second half of 2022E when the foreign tourists arrive at a pace of at least 400k people per month. Meanwhile
- Long-Term growth prospect remain intact given number of hotel room expansion at 15%CAGR in 2023-26E.
- Recent rally in stock price has priced in positive sentiment toward overall Thai tourism sector after restriction measure has eased.However,faster-than-expected recovery in foreign tourist inbound remain an upside risk for22-23E
OR: Positive 2022 Outlook from Revamping Oil and F&B Sales
- Yesterday analyst meeting came out in a neutral tone,we expect the dip in oil marketing margin (diesel price cap) to persist till 1H22, while revamping oil and F&B sales volume
- Expect the 1Q22 earnings to improve QoQ from improving oil and F&B sales volume, while dip in oil marketing margin would drag the earning YoY.
- Positive 2022 outlook with a 9% EPS growth. The post COVID-19 economic recovery is expected to drive the oil and F&B sales volume 10 to 15%,which will offset the 9%
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