Expectations of YoY core operational improvement through 3Q22 should catalyze the share price going forward. Also, there is scope for upside to our earnings projections from new investments. IRPC’s current valuation is still undemanding—a YE22 PBV of 0.8x (1.2SD below its long-term mean of 1.3x).
Bottom-line above forecast; core profit as expected
IRPC posted a 2Q22 net profit of Bt3,833m, down by 16% YoY but up 155% QoQ. Stripping out extra items, the core profit was Bt5,312m, up 125% YoY and a reversal from core loss posted in 1Q22. While the core profit was in line with our estimate, the bottom-line was 12% above our projection (9% above the consensus’) due to smaller extra losses than expected.