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).