We expect the stock price to jump on the exciting 2Q22 result and high dividend for 1H22. However, the resale of treasury stock will continue to dampen the share price until July 2023 (8.97% of total paid-up shares are currently unsold). Our HOLD rating stands with an unchanged YE22 target price of Bt24 (pegged to a 2022 PER of 8x).
Beat us and the consensus
SPALI reported a 2Q22 net profit of Bt2.1bn, up by 20% YoY and 76% QoQ. Excluding a one-time extra item tied to an investment in a JV project, core earnings would be Bt1.9bn, up by 8% YoY and 59% QoQ. The core result was 17% ahead of our estimate and 18% above the consensus (residential revenue was 8% higher than our assumption). SPALI announced a DPS of Bt0.70 for 1H22 (we had assumed only Bt0.50), a 3.5% simple yield (XD Aug 23, payment Sep 7).