Earnings Report /
Thailand

Quality Houses PCL: 3Q22 beat us and the street

  • Profit beat our estimate and the consensus

  • QH posted a 3Q22 net profit of Bt640m

  • We have raised our 2022 core profit forecast by 7% to Bt2.4bn

Bualuang Securities
9 November 2022

In the short run, the stock price might rise on news of the 3Q22 profit beat. We expect a sideways-up movement in the Bt2.20-2.40 range, supported by QH’s stakes in HMPRO (20%), LHFG (14%), QHPF (26%) and QHHR (31%). Our HOLD call stands with a SOTP-derived target price of Bt2.50, pegged to investment value of Bt2.2/share (a 15% discount to market value) and a targeted residential PER of 9.0x.

Profit beat our estimate and the consensus

QH posted a 3Q22 net profit of Bt640m, up by 143% YoY and 24% QoQ. The core result was 13% above our estimate (a lower SG&A/sales ratio and lighter interest expenses than we had assumed) and 16% ahead of the consensus.