In today’s briefing:
- RJH: 4Q21 Earnings Grew YoY but Drop QoQ
- RATCH: Minor Dilution Impact from Capital Raising
- COM7: 5G to Drive Strong Earnings Growth in 2022 and Beyond
- ICHI: Strong Earnings Momentum with Attractive Dividend Yield
- ILM: Positive Earnings Outlook in 2022-24
RJH: 4Q21 Earnings Grew YoY but Drop QoQ
- Maintain HOLD rating with a TP of Bt33.50, based on 19.14xPE’22E,which is pegged to -1SD of 3-years trading mean.Despite drastic drop in 22E profit, its strategic location, combined with undemanding
- Its 4Q21 net profit was at Bt283m (+96%YoY, -42%QoQ), given weak QoQ revenue growth, and margin contraction due to lowered Covid-19 related contribution.
- RJH’s 2021 earnings was at Bt1.01bn, implying +145% YoY, mainly attributed to higher contribution from Covid-related services.
RATCH: Minor Dilution Impact from Capital Raising
- Last week analyst meeting came out in a positive tone. We maintain the BUY call based on target price of Bt48.0 derived using SOTP methodology, implying 9.0xPE’22E.
- The 1Q22 earnings is expected to soften QoQ due to seasonal weak contribution from Hydro projects, RAC (Australia), and weak domestic SPP margins. The earnings should pick up 2Q22 onwards
- The 2022 net profit growth will be supported by 1)full year profit recognition of 377MWe projects added in 2021 (Yandin&collector wind farm) and 2) 150MWe new project COD in 2022.
COM7: 5G to Drive Strong Earnings Growth in 2022 and Beyond
- We upgrade COM7 to BUY and raise TP by 34% to Bt92.50 derived from 34.5xPE’22E (+0.25SD of 5-Yr trading average).Our rating reflects a positive outlook toward its strong potential growth
- We downgrade our target PE to 34.5xPE’22 (+0.25SD) from 39.0xPE’22 (+1SD) previously to reflect declining earnings momentum. We believe recurring earnings growth at CAGR of 45% over past two years
- We expect strong earnings growth in 2022 at +23% driven by strong iPhone 14 sales due to growing 5G device penetration.
ICHI: Strong Earnings Momentum with Attractive Dividend Yield
- We reiterate our BUY rating for ICHI with a target price of Bt13.0 based on 25xPE’22E, the five-years average trading range and close to Thailand consumer staples.
- We expect strong earnings momentum to continue to grow both YoY and QoQ in 1Q22 and continue in 2Q22 from high season quarter.Currently,ICHI trading at 20xPE’22E cheaper than its five-years
- We expect earnings to grow at CAGR of11%in the next three year to reach Bt742m by 2024 supported by launching new products and new markets expansion,as well as margin expansion
ILM: Positive Earnings Outlook in 2022-24
- Yesterday analyst meeting came out with a positive tone.We maintain BUY rating with a target price of Bt21.0, derived from 18xPE’22E,+1SD from three years average trading range or 50% discount
- We expect earnings to grow to Bt764m in 2024E or +19%CAGR (2022-24E) from -5%CAGR(2019-21), driven by 1) solid SSSG and online sales, 2) solid recovery in rental income
- To implement a more aggressive strategy after COVID-19, the management aims to expand 1-2 new stores per year from 2023 onwards.
Before it’s here, it’s on Smartkarma
