The weaker-than-expected 1Q22 result prompted us to cut our 2022 earnings forecast, but we still expect a bottom-line turnaround this year. Our BUY call stands to a YE22 DCF-derived target price of Bt47.
1Q22 result missed our estimate and the street
CENTEL reported a 1Q22 net loss of Bt44m (against a loss of Bt476m for 1Q21 and a profit of Bt152m for 4Q21). The red ink was a surprise to us (and to the consensus)—we had expected a net profit for the quarter. The loss was due to a deeper-than-assumed loss at the hotel business and a lower-than-assumed profit at the food operation.