We expect the stock price to rally in anticipation of strong earnings growth for 4Q21 and 2022 and an attractive dividend yield (not yet paid) of 5.3% for 2021. SC’s implied 2022 PER is 6.6x, below its 2006-20 average of 6.8x and our ResProp coverage mean of 10.6x. Our earnings forecast upgrade meant that our SOTP-derived YE22 target price increased from Bt3.50 to Bt3.90, pegged to a residential biz PER of 6x 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 net profit of Bt545m for 3Q21, down 20% YoY but up 5% QoQ, in line with our estimate and the street.