Earnings Report /
Thailand

SC Asset Corp PCL: 2Q22 profit rose, as expected; 1st-time interim DPS for 1H22

  • In line with our estimate and the consensus

  • SC reported a core profit of Bt581m for 2Q22

  • the company’s first-ever interim DPS for 1H22 of Bt0.08

Bualuang Securities
11 August 2022

We expect the stock price to rise, triggered by the good 2Q22 result and the first-time interim dividend for 1H22, so have upgraded our call from HOLD to BUY. SC’s 2022 earnings profile is backloaded to 2H22 (juiced by 4Q22 condo transference). Our SOTP-derived YE22 target price is Bt3.90, pegged to a residential biz PER of 6.0x and rental market value of Bt1.0/share (a 30% discount to appraised value).

In line with our estimate and the consensus

SC reported a core profit of Bt581m for 2Q22, up by 12% YoY and 50% QoQ. The core result was in line with our estimate and the consensus. SC’s board, surprisingly, announced the company’s first-ever interim DPS for 1H22 of Bt0.08, a 2.3% simple yield (XD August 25, payment September 7).