KCE’s stock price typically reacts to takeaways from meetings with analysts. Its 1Q22 post-result analyst meeting will be held this afternoon. Whatever management tells the audience could point to a trading play. We think the firm will tell analysts about the progress of solutions to production problems We may therefore see more juice in the stock!
Earnings missed estimates
KCE posted a 1Q22 bottom-line of Bt590m, up by 17% YoY but down 16% QoQ. Stripping out a FX gain (Bt62m) and a loss from fair value of financial investment (Bt30m), core earnings would be Bt558m, up by 30% YoY but down by 14% QoQ. The core number was 13% below our estimate and that of the consensus, due to a slimmer GM than we had anticipated.