In today’s briefing:
- TISCO: Quality Growth with a High Dividend Payment
- ORI: 1Q22 Earnings Will Drop YoY and QoQ
TISCO: Quality Growth with a High Dividend Payment
- We initiate coverage of TISCO with a BUY rating and a target price of Bt106. Our valuation is derived from a Gordon growth model (ROE 17.5%, growth 2%),implying 2.0x PBV’22E
- Moderate net profit growth at 6% CAGR in 2022-24 on a potential reduction in credit cost and higher NIM
- Loans will likely pick up in 2022 with a focus on high-yield loans. Resilient asset quality and high loan loss reserves against uncertainties
ORI: 1Q22 Earnings Will Drop YoY and QoQ
- We maintain BUY with a new TP of Bt13.00 (previous at Bt13.70), based on 9.8xPE’22E, 5% discount from its 5 years trading average.We have positive view to its 2022 outlook
- We expect 1Q22 net profit at Bt723 m (-12%YoY,-10%QoQ), pressured by 1) Lower revenue recognition from real estate sales to Bt 3.15 bn (-9%YoY) 2) loss contribution from equity income
- Strong 1Q22 presales imply strong earnings momentum. Strong backlog and new project launch will support 2022 earning
Before it’s here, it’s on Smartkarma
