Earnings Report /
Thailand

Land & Houses PCL: 3Q21 result short of our estimate, but in line with the street forecast

  • Disappointed our forecast but in line with the consensus number

  • LH reported a net profit of Bt1.30bn for 3Q21

  • We expect core profit recovery in 3Q21

Narumon Ekasamut
Narumon Ekasamut

Equity Research Analyst

Bualuang Securities
15 November 2021

We prefer LH as the proxy of residential property sector given its largest market capitalization. LH trades at a 2022 PER of 12.7x, a 10% discount to its 14.3x PER mean for 2006-20. Our BUY rating stand at a YE22 SOTP-derived target price of Bt10, based on a residential target PER of 12.5x and Bt4.5/share of investment value (a 10% discount to market value).

Disappointed our forecast but in line with the consensus number

LH reported a net profit of Bt1.30bn for 3Q21, down by 36% YoY and 30% QoQ. Excluding a Bt19m FX-hedging gain, core earnings were Bt1.29bn, down by 28% YoY and 31% QoQ. The core number was in line with the street forecast, but 19% below our estimate (7% from disappointing residential sales and 12% from rental revenue shortfall).