Expectations of a core operational improvement in 2H20 should boost TOP’s stock price going forward. In any case, its current valuation is undemanding—a YE21 PBV of just 0.8x (1.5SD below its long-term mean of 1.5x). Our BUY rating stands.
TOP unveiled 2Q20 net earnings of Bt2,480m, up 338% YoY and a QoQ turnaround. Stripping out extra items, the core loss would be Bt282m, a reversal from the core profit posted for 2Q19 and deeper into the red QoQ. NPAT was 9% above our estimate, due to higher extra gains than expected (but was 13% below the consensus).