DELTA’s growth outlook is solid, driven by technology trends—EVs, data centers, and IOT. However, the stock is very expensive—a 2022 PER of 56x and a PEG ratio of 1.7x. HOLD!
4Q21 core earnings were 19% above our projection
DELTA posted a 4Q21 net profit of Bt2.1bn, up by 33% YoY and 76% QoQ. Stripping out an FX gain (Bt168m), core earnings would be Bt1.9bn, up by 18% YoY and 47% QoQ. The core number was 19% above our estimate (and 3% ahead of the consensus), due to lighter SG&A and tax expenses than we had assumed. The firm announced a DPS of Bt1.7 for 2021, implying a 0.4% simple yield (XD Feb 28, payment Apr 22).