TOA : Rising Raw Material Cost Already in the Price

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Thai Equity - Bottom-up - Equities, Pi Securities PCL, Thailand

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Equity Bottom-Up

<ul>
<li>Yesterday analyst meeting came out with a negative tone.We expect TOA net profit in 1H22to weaken YoY due to an increase in raw material cost in spite of upward selling </li>
<li>We expect earnings drop both QoQ and YoY in 1Q22 caused by squeezed GPM from rising raw material cost. In contrast,revenue will be expanded YoY supported by demand for painting </li>
<li>We revised down 2022-23 earnings by 3-7% in 2022-23E to factor in further decrease in gross profit margin caused by a rise in material cost following spike in oil price.</li>
</ul>


Yesterday analyst meeting came out with a negative tone.We expect TOA net profit in 1H22to weaken YoY due to an increase in raw material cost in spite of upward selling 
We expect earnings drop both QoQ and YoY in 1Q22 caused by squeezed GPM from rising raw material cost. In contrast,revenue will be expanded YoY supported by demand for painting 
We revised down 2022-23 earnings by 3-7% in 2022-23E to factor in further decrease in gross profit margin caused by a rise in material cost following spike in oil price.


TOA: Squeeze Margin Pressured 1H22 Earnings

TOA Paint (Thailand)

TOA: Squeeze Margin Pressured 1H22 Earnings