Earnings Report /
Thailand

AP Thailand PCL: 3Q22 result in line; street likely to up-size 2022 forecast modestly

  • In line with our estimate and the consensus

  • AP posted 3Q22 net earnings of Bt1,418m

  • We expect 4Q22 earnings to rise YoY but fall QoQ

Bualuang Securities
9 November 2022

We like AP for its potential to beat the 2022 earnings forecasts of ourselves and the consensus and its compelling valuation. The stock trades at a cheap 2022 PER of 5.5x, a substantial discount to its 2006-21 mean of 7.0x. Our BUY call stands to a YE23 target price of Bt13, pegged to a PER of 8x.

In line with our estimate and the consensus

AP posted 3Q22 net earnings of Bt1,418m, up 38% YoY but down 10% QoQ from a high 2Q22 base. Stripping out a net-of-tax Bt97m gain from an asset sale, core profit would be Bt1,321m, up 28% YoY but down 16% QoQ. The core number was in line with our estimate and the consensus.