Our TRADING BUY stands, led by the sustained high sugar price in 2H23 through 2024 from the El Niño effect and the solid 2023 profit growth.
Overshot our model by a mile
KSL posted a net profit for 1Q23 (Nov 1, 2022-Jan 31, 2023) of Bt538m, up 62% YoY and 869% QoQ. Stripping out an extra item in 1Q23—Bt28m FX loss—it posted a Bt566m core profit for the quarter, up 62% YoY and a QoQ turnaround from a Bt13m core loss in 4Q22. Net and core profits exceeded our model by 63% and 62%, respectively, thanks to a significantly higher GM than modeled. Sales were in line with our model. GM of 26.1% beat our 18.7% estimate thanks to higher selling prices for both sugar and electricity. After-tax profit beat our model by 68%.