In today’s briefing:
- Ngern Tid Lor IPO Lock-Up – A US$660m Overhang. Selldown Is a Question of When, Not If.
- GPSC: 1Q22 Earnings Hit by Low SPP Margin
- QH: 1Q22 Earnings Will Grow YoY and QoQ
- CHG: 1Q22 Earnings to Hold up Strong Amid Surged COVID
Ngern Tid Lor IPO Lock-Up – A US$660m Overhang. Selldown Is a Question of When, Not If.
- Ngern Tid Lor (NTL), a financial service provider based in Thailand, raised around US$1bn in its Thailand IPO in May 2021.
- NTL provides hire purchase loans for motorcycles and cars, along with new and used trucks. It also provides insurance brokerage services through its branches for non-life and life insurance.
- The lock-up on its two main shareholders will expire today.
GPSC: 1Q22 Earnings Hit by Low SPP Margin
- GPSC reported 1Q22 net profit of Bt313m (-84%YoY, -73% QoQ),an all time low. The result came out lower than our expectation, mainly dragged by the slump in SPP margins due
- The gross profit margin in 1Q22 fall to an all time low of 3%,compared to 20% in 1Q21 and 8% in 4Q21, following the rise in natural gas fuel cost
- We turn negative on GPSC 2022 earnings outlook,the SPP margins are expected to remain under pressure in 1H22 and gradually pick up 3Q22 onwards as the fuel price begins normalizing.
QH: 1Q22 Earnings Will Grow YoY and QoQ
- Maintain BUY rating with target price of Bt2.66 based on 11.8xPE’2022E, its five-years trading average. We are positive to its 2022 outlook and beyond backed by 6 new projects launch
- We expect 1Q22 net profit at Bt535 m(+24%YoY, +8.4%QoQ),driven by higher revenue recognition from real estate sales at Bt 2.08 bn(+11.3%YoY) and higher equity income recognition at Bt403 m (+4.2%YoY,23.4%QoQ).
- High-End low-rise project launch will support 1Q22 earnings to grow YoY.
CHG: 1Q22 Earnings to Hold up Strong Amid Surged COVID
- Reiterate HOLD rating with a TP of B3.90, derived from 15xPE’22E, which is close to -2SD of 10-years trading mean. Although 22E earnings on a downhill path
- We estimate 1Q22E earnings to be the peak quarter at Bt1.3bn (+418%YoY,-28%QoQ) underpin by YoY growth in COVID-revenue, but QoQ fall from weaker EBIT margin.
- We believe earnings momentum to slow down in 2Q22, pressured by lower COVID-19 contribution, as a result of lower infection patients and stopped RT-PCR requirement.
Before it’s here, it’s on Smartkarma
