Equity Analysis /
Thailand

SC Asset Corp PCL: 4-B (Bullets) under 3-Year Plan

  • Best Quarter: 4Q22 will be SC’s best quarter since pre-COVID era

  • Business plan unveiled; more high-end launches in 2023

  • Better-than-expected recurring income, especially the hotel biz

Bualuang Securities
28 November 2022

SC hosted a private meeting on Nov 24-25 for analysts. It unveiled a three-year business plan that we dubbed     4-B: 1) Best quarter, 2) Business plan, 3) Better-than-expected hotel biz, 4) Balance sheet still supportive. We upgraded our YE23 target price from Bt4.20 to Bt4.50!

Best Quarter: 4Q22 will be SC’s best quarter since pre-COVID era

The company’s earnings are normally backloaded to the fourth-quarter; that is true of this year. We expect 4Q22 core earnings to be the best of 2022, with both low-rise and condo transference. About 75% of our revenue assumption is secured by backlogs. 40% of the revenue secured are from Scope Langsuan (Bt8.3bn, 41% booked), Scope Promsri (Bt1.0bn, 43%), and The Crest Park Residences (Bt3.1bn, 33%).  For the remaining 25%, SC has a heavy 4Q22 project launch schedule (Bt19bn in value, up 97% QoQ—Bt16bn in low-rise projects and Bt2.8bn in condo projects).