We believe that LEO’s recent share price slump has already priced in the dull outlook for sea freight rates. Our model points to strong earnings expansion ahead, so our BUY rating stands to a target price of Bt22.50.
Beat our expectations for net and core earnings
LEO posted a 2Q22 net profit of Bt100m, up by 134% YoY and 11% QoQ. The 2Q22 bottom-line was 5% above our estimate. Stripping out extra items, the core number would be Bt107m, up by 145% YoY and 15% QoQ. Core profit was 13% above our estimate. Both net and core earnings hit new records for the sixth consecutive quarter.