Earnings Report /
Thailand

WHA Corp PCL: 3Q21 core profit was in line; strong recovery ahead!

  • Core profit was in line with our estimate

  • WHA posted a 3Q21 bottom-line of Bt160m

  • The top-line increased 17% YoY

Kijapat Wongmetta
Kijapat Wongmetta

Equity Research Analyst

Bualuang Securities
15 November 2021

Persisting Sino-US trade conflict into the post-COVID era (exacerbated by concerns over power shortages in China) will prompt further production migration from China to other jurisdictions. The release of pent-up demand as COVID-19 effects ease will also boost land sales. Moreover, the govt has unveiled plans for a slate of infrastructure developments and announced a range of policies and incentives to support investment in renewable energy and EV-related businesses. And baht depreciation against the greenback is likely to encourage foreign investors to purchase land in Thai industrial estates. We could be looking at the strongest IE super-cycle since 2002. BUY!

Core profit was in line with our estimate

WHA posted a 3Q21 bottom-line of Bt160m, down by 63% YoY and 38% QoQ. Reported NPAT was 31% below our estimate (heavier FX losses than assumed), but the number was in line with the consensus. Stripping out extra items, core earnings would be Bt229m, down by 48% YoY and 19% QoQ. The core number was in line with our expectation, but was 11% short of the consensus. Note that WHA will pay an interim dividend of Bt0.10/share (XD Nov 25, payment Dec 9), implying a simple yield of 2.9%.