Earnings Report /
Thailand

Land & Houses PCL: 1Q22 in line; building up for exciting 2H22 earnings

  • Core earnings were in line with our estimate and the street

  • LH reported a net profit of Bt1.9bn for 1Q22

  • 2Q22 core profit is likely to be flattish YoY and QoQ

Phoowadol Phoosodngern
Bualuang Securities
13 May 2022

Most ResProp stock prices dropped yesterday in a market sell-off. We strongly recommend buying LH on dips for its strong 2022 earnings growth theme and its attractive dividend yield of 6.8% (twice-yearly payments). The current stock price implies a 2022 PER of 13.1x, 8% below its 14.2x long-term mean. Our BUY call stands to a YE22 SOTP-derived target price of Bt11.50 (a residential PER of 13.5x and Bt5.30/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 Bt1.9bn for 1Q22, up 11% YoY but down 4% QoQ. Excluding a Bt60m net-of-tax gain on derivatives and a loss on FX, core earnings would be Bt1.9bn, up 12% YoY but down 9% QoQ. The core result was in line with our estimate and the consensus.