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Land & Houses PCL: 1Q21 result as expected; Looking to YoY profit jump for 2Q21

  • Core earnings were in line with our estimate and the street
  • LH reported a net profit of Bt1.74bn for 1Q21
  • The YoY core earnings growth was led by residential sales and a fatter residential GM

LH looks good for a mid- to long-term investment horizon. It trades at an inexpensive 2021 core PER of 12.2x, below its 2006-20 mean of 13.7x, and its assumed dividend payout implies a great yield of 7.1% (two payouts/year). Our BUY rating stands to a YE21 SOTP-derived target price of Bt10 (a residential PER of 12.5x and Bt5/share of investment value, a 10% discount to market value).

Core earnings were in line with our estimate and the street

LH reported a net profit of Bt1.74bn for 1Q21, up 29% YoY but down 26% QoQ. Excluding an Bt83m net-of-tax gain from the reversal of a legal provision and a Bt12m FX-hedging loss, core earnings would be Bt1.67bn, up 9% YoY but down 16% QoQ, in line with our estimate and the consensus.


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