Earnings Report /
Thailand

AP Thailand PCL: 2Q20 result beat our estimate; good YoY growth outlook for 3Q20

  • Beat our estimate (but in line with the consensus)

  • AP posted a 2Q20 core profit of Bt1.2bn for 2Q20

  • Core earnings growth for the quarter was driven by transference and profit-sharing from JV condos

Bualuang Securities
13 August 2020

We like AP for its potential to beat the current consensus forecast and its compelling valuation. The stock trades at a cheap 2020 PER of 6.2x, a substantial discount to its 2006-19 mean of 7.3x and 25% discount to end-June 2020 BV. AP has scope to set a new low-rise presales high for 3Q20 (the last was Bt7.7bn for 2Q20), driven by low-rise launch value of Bt16bn during the quarter (up by 153% YoY and 118% QoQ). Our BUY call stands to a new YE20 target price of Bt7.20, pegged to a PER of 7x.

Beat our estimate (but in line with the consensus)

AP posted a 2Q20 core profit of Bt1.2bn for 2Q20, up by 161% YoY and 97% QoQ. It was line with the consensus, but beat our estimate by 11%, due to 27% higher equity income from JV projects than assumed.