Earnings Report /

SCG Packaging PCL: 1Q22 profit beat estimate; expected 2Q22 earnings softness priced in

  • Above estimate

  • SCGP reported a 1Q22 net profit of Bt1,658m

  • The IPC’s EBITDA margin was 14% in 1Q22

Suppata Srisuk
Suppata Srisuk

Equity Research Analyst

Bualuang Securities
27 April 2022

We believe the recent share price underperformance has already priced in the expectations of 2Q22 core earnings soft patch. Looking further ahead, strong earnings growth outlook for 2022 should catalyze the share price going forward. Moreover, SCGP’s long-term prospects look favorable, buoyed by growing demand and substantial growth opportunities from global mega trends. Our BUY rating stands.

Above estimate

SCGP reported a 1Q22 net profit of Bt1,658m, down 22% both YoY and QoQ. Stripping out a Bt8m FX loss, core earnings would be Bt1,666m, down by 26% YoY but up 29% QoQ. The net profit was 19% above our estimate, due to better margin of Integrated Packaging Chain (IPC) than expected (5% below the consensus).