The 1Q22 earnings dive may generate negative market sentiment toward SPALI. And the strong 2Q22 profit will be followed by weak 2H22 numbers (and 2022 earnings will decline YoY, according to our model). Moreover, SPALI’s resale of treasury stock will continue exerting downward pressure on its share price (8.97% of its total paid-up shares are currently treasury stock). Our HOLD rating stands with an unchanged YE22 target price of Bt24 (pegged to a PER of 8x).
In line with our estimate and the consensus
SPALI reported a core profit of Bt1.2bn for 1Q22, up 59% YoY but down 59% QoQ (from record high earnings). The result was in line with our expectation and with the street estimate.