The improving market outlook should boost TOP’s operational performance YoY in 1Q22. Expectations of strong core earnings growth in 2022 should boost TOP’s share price going forward. Moreover, its valuation is still undemanding—a YE22 PBV of only 0.9x (1.2SD below its long-term mean). Our BUY rating stands.
In line with estimates
TOP reported a 4Q21 net profit of Bt5,003m, down 31% YoY but up 143% QoQ. Stripping out extra items, the core profit would be Bt2,105m, a YoY turnaround and up 81% QoQ. The result was in line with our estimate and the consensus’. TOP announced 2H21 DPS of Bt2.00, implying a simple yield of 3.8% (XD: 3 Mar, payment: 25 Apr).