The uninspiring outlook through 4Q22 and potential consensus earnings downgrades may cap the share price performance going forward. Nevertheless, the current valuation—trading at a YE23 PBV of 1.0x (1.7SD below its long-term average of 2.2x)—has already priced this in, so further downside should be limited. Our HOLD rating stands.
Core earnings in line; net profit beat our estimate
SCC reported a 3Q22 net profit of Bt2,444m, down by 64% YoY and 75% QoQ. Stripping out extra items, core earnings would be Bt3,524m, down by 59% YoY and 65% QoQ. While the core profit was in line with our estimate, the bottom-line was 24% above our estimate, due to lower inventory loss than expected (but it was 18% below the consensus’s).