The stock price will rise on news of the 3Q22 profit beat. We now see SPALI as a no-pressure stock since it changed the procedures and timing for selling repurchased shares to Oct 25, 2022 (already completed). And the firm still has scope to beat the forecasts of ourselves and the consensus. Our BUY rating stands with an unchanged YE23 target price of Bt25 (pegged to a 2023 PER of 8x).
Beat our expectation and the consensus
SPALI reported a 3Q22 net profit of Bt2.7bn, up by 60% YoY and 47% QoQ. The result was 12% ahead of our estimate and 10% above the consensus (the SG&A/revenue ratio was 11% below our assumption).