We strongly recommend taking positions in LH—its earnings profile is backloaded to 2H22 and we expect a generous dividend yield for 2022 of 6.8% (twice-yearly payments). The current stock price implies a 2022 PER of 12.9x, 9% below its 14.2x long-term mean. Our BUY call stands to a YE22 SOTP-derived target price of Bt11.50.
Core earnings were in line with our estimate and the street
LH reported a net profit of Bt2.1bn for 2Q22, up by 14% YoY and 11% QoQ. Stripping out a Bt161m net-of-tax gain on derivatives and a loss on FX, core earnings would be Bt2.0bn, up by 5% YoY and 6% QoQ. The core result was in line with our estimate and the consensus. LH announced a DPS of Bt0.25 for 1H22 (below our assumption of 0.30), a 2.8% simple yield (XD Aug 25, payment Sep 9).