Earnings Report /
Thailand

Eastern Polymer Group PCL: 1Q22 earnings a miss; uninspiring near-term outlook

  • Below estimates

  • EPG reported a 1Q22/23 (Apr-Jun) net profit of Bt231m

  • We have slashed our FY22 net profit forecast by 11%

Suppata Srisuk
Suppata Srisuk

Equity Research Analyst

Follow
Bualuang Securities
15 August 2022

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.

Below estimates

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.