The street-beating 1Q22 result coupled with substantial core earnings growth outlook through 2Q22 and in 2022 should boost the share price going forward. The current valuation is still undemanding—trades at YE22 PBV of only 1.3x (0.7SD below its long-term mean of 1.8x). Moreover, there’s scope for upside to our forecasts and valuation from new investments/acquisitions. BUY!
Beat all estimates
IVL reported a record high net profit of Bt14,070m, up 134% YoY and 161% QoQ. Stripping out extra items, core earnings would be Bt10,344m, up 301% YoY and 87% QoQ. The result was 46% above our estimate (51% above the consensus’), due to higher margins and extras gain than expected.