Earnings Report /
Thailand

SC Asset Corp PCL: 2Q20 core profit in line; set for YoY and QoQ decline in 3Q20

  • In line with our estimate and the consensus

  • SC reported a net profit of Bt456m for 2Q20

  • Excluding an extra item, a Bt40m credit loss

Bualuang Securities
11 August 2020

Quarterly profit peaked for the year was 2Q20, we believe. In the mid- to long-term, the stock will come under pressure, as SC’s 3Q20-through-2021 earnings profile is unimpressive. But it currently trades at a low YE20 PBV of 0.5x. Our HOLD call stands with a new SOTP-derived target price is Bt2.5, pegged to a residential biz PER of 5x and rental market value of Bt1.0/share (a 30% discount to appraised value).

In line with our estimate and the consensus

SC reported a net profit of Bt456m for 2Q20. Excluding an extra item, a Bt40m credit loss (required under the new TFRS9 accounting standard), core earnings would be Bt496m, up by 59% YoY and 65% QoQ, in line with our estimate and the street. SC has no interim dividend policy.