Earnings Report /
Thailand

HANA: 1Q22 core profit a miss

  • 1Q22 core earnings were 9% below our estimate

  • HANA posted a 1Q22 net profit of Bt365m

  • Revenue totaled Bt6.1bn, up 17% YoY but down 2% QoQ

Napon Jaisan
Napon Jaisan

Equity Research Analyst

Bualuang Securities
17 May 2022

HANA’s sales growth outlook is solid, driven by strong demand among automotive customers and smartphone brands and industrial product manufacturers. However, several external factors will squeeze its GM. Moreover, its core earnings are likely to drop YoY for the next two quarters. HANA’s valuation deserves a re-rating. We have cut our target price from Bt59 to Bt42. SELL!

1Q22 core earnings were 9% below our estimate

HANA posted a 1Q22 net profit of Bt365m, up 21% YoY but a QoQ turnaround. Stripping out extra items, core earnings would be Bt399m, down by 3% YoY but flattish QoQ. The core number was 9% below our expectation (and 23% shy of the consensus), due to a slimmer GM and heavier SG&A than we had assumed.