Earnings Report /
Thailand

Siam Cement: 2Q22 earnings beat; uninspiring short-term outlook priced in

  • Above estimates

  • SCC reported a 2Q22 net profit of Bt9,938m

  • The Chemical unit delivered a 2Q22 net profit of Bt3,704m

Suppata Srisuk
Suppata Srisuk

Equity Research Analyst

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Bualuang Securities
1 August 2022

Despite the uninspiring outlook through 3Q22, SCC’s earnings look poised to rebound in 4Q22, boosted by improved operational performance across all businesses. Moreover, SCC’s current valuations are a bargain—trading at a YE22 PBV of 1.2x (1.5SD below its long-term average of 2.2x)—with a good 2022 dividend yield of 4.3% (against 2.8% for the SET).

Above estimates

SCC reported a 2Q22 net profit of Bt9,938m, down by 42% YoY but up 12% QoQ. Stripping out extra items, core earnings would be Bt10,000m, down by 41% YoY but up 29% QoQ. The bottom-line was 34% above our estimate (and 20% above the consensus’s), due to higher dividend income than expected. SCC announced 1H22 DPS of Bt6, implying a simple yield of 1.6% (XD: 10 Aug, payment: 26 Aug).