Earnings Report /
Thailand

SC Asset Corp PCL: 3Q21 in line; The year highest earnings expected in 4Q21

  • In line with our estimate and the consensus

  • SC reported a net profit of Bt545m for 3Q21

  • 4Q21 core profit will rise YoY (fatter residential GM) and QoQ

Phoowadol Phoosodngern
Bualuang Securities
11 November 2021

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.