Earnings Report /

Eastern Polymer Group PCL: 4Q21 earnings missed estimates, stronger quarter ahead

  • Below estimates

  • EPG reported a 4Q21/22 (Jan-Mar) net profit of Bt336m

  • EPG’s core earnings look set to expand YoY and QoQ in 1Q22/23

Suppata Srisuk
Suppata Srisuk

Equity Research Analyst

Bualuang Securities
31 May 2022

The expectations of core profit expansion in 1Q22/23 (Apr - Jun) and throughout FY22, with improved performance across all key businesses, should catalyze the share price going forward. The current valuation is still undemanding—trades at FY22 PE of only 15.8x (1.1SD below its long-term mean of 24.3x).

Below estimates

EPG reported a 4Q21/22 (Jan-Mar) net profit of Bt336m, down 17% YoY and 16% QoQ. Stripping out extra items, core earnings would be Bt348m, down 2% YoY and 5% QoQ. The result was 15% below our forecast (and that of the consensus), due to lower share of equity income than modeled and higher additional expenses than expected. EPG announced 2H21 DPS of Bt0.19, implying a simple yield of 1.9% (XD: 1 Aug, payment: 19 Aug).