Our HOLD call stands with a target price of Bt1.30. We suggest waiting for ANAN to announce a 2023 business plan, at which point the stock may possibly be worth re-considering as a turnaround play.
Net loss wasn’t as deep as our estimate or the consensus
ANAN reported a net loss of Bt16m for 3Q22, against net losses of Bt252m for 3Q21 and Bt43m for 2Q22. Excluding a Bt1m gain from a discontinued business, the 3Q22 core loss would be Bt18m, against core losses of Bt250m for 3Q21 and Bt17m for 2Q22. The core red ink was shallower than our estimate of a Bt61m core loss and the consensus estimate of a Bt24m core loss.