As the firm’s earnings outlook in the near-term is uninspiring, we don’t see any obvious catalyst for a share price rise. EPG currently trades at FY22 PE of only 17.6x (0.8SD below its long-term mean of 23.6x) which should buffer the downside risk of the share price. Thus, we have downgraded our rating from BUY to HOLD.
EPG reported a 1Q22/23 (Apr-Jun) net profit of Bt231m, down 49% YoY and 31% QoQ. Stripping out extra items, core earnings would be Bt252m, down 41% YoY and 28% QoQ. The result was 26% below our forecast (34% below the consensus’), due to higher SG&A expenses than expected.