Earnings Report /
Thailand

SC Asset Corp PCL: 3Q22 in line; 4Q22 to be best quarter of year

  • Good profit growth, as expected

  • SC reported a core profit of Bt652m for 3Q22

  • Core earnings rose by YoY and QoQ

Bualuang Securities
10 November 2022

The stock is likely to rally on proof of strong earnings growth for 3Q22, market anticipation of an even better number for 4Q22, and a good dividend yield for 2H22 of 3.9%. SC’s implied 2023 PER is 6.3x, below its 2006-20 average of 6.8x and our ResProp coverage mean of 10.6x. We have an SOTP-derived YE23 target price of Bt4.20, pegged to a residential biz PER of 6x and rental market value of Bt1.0/share (a 20% discount to appraised value).

The stock is likely to rally on proof of strong earnings growth for 3Q22, market anticipation of an even better number for 4Q22, and a good dividend yield for 2H22 of 3.9%. SC’s implied 2023 PER is 6.3x, below its 2006-20 average of 6.8x and our ResProp coverage mean of 10.6x. We have an SOTP-derived YE23 target price of Bt4.20, pegged to a residential biz PER of 6x and rental market value of Bt1.0/share (a 20% discount to appraised value).