KCE’s stock price typically reacts to takeaways from analyst meetings. Its 2Q20 post-result analyst meeting will be held this afternoon (Aug 13). Predicting what management will tell the audience can point to a trading play. We think KCE will tell analysts about nascent recovery signs for 2H20, so have a BUY call ahead of the meeting.
2Q20 core profit was in line with our estimate
KCE posted a 2Q20 bottom-line of Bt71m, down by 55% YoY and 83% QoQ. Excluding extra items—an FX gain and impairment provisions of Bt56.5m for unproductive machinery—core profit would be Bt128m, down by 40% YoY and 63% QoQ. The bottom-line was in line with our expectation (but was much better than the street estimate of Bt8m). KCE announced an interim DPS of Bt0.40 for 1H20, implying a 1.4% simple yield (XD Aug 24, payment Sep 9).