CHG’s stock price rose last Thursday, which we think mostly priced in the street-beating result and the dividend announcement for 1H22. We suggest selling on fact, given the unexciting 2H22 outlook. Our HOLD rating stands with an unchanged YE22 target price of Bt4 (6.9% WACC and 2.0% terminal growth).
Far above our estimate and beat the consensus
CHG posted a core profit of Bt878m for 2Q22, up 52% YoY but down 35% QoQ. The result was 46% above our estimate and 7% ahead of the consensus (revenue was 7% higher and GM 9.4% fatter than we had assumed). CHG announced a DPS for 1H22 of Bt0.085, a 2.9% simple yield (XD Aug 24, payment Sep 9).