HANA comes with risks associated with the global economic slowdown, supply chain issues, and geopolitical tensions. The potential cycle peak and limited upward earnings revision breadth may create downside risks into 2022-23. Moreover, benefit from baht depreciation may reverse in 2023. We recommend a wait-and-see stance for now.
3Q22 core earnings were 26% above our estimate
HANA posted a 3Q22 net profit of Bt417m, down 26% YoY but up 70% QoQ. Stripping out extra items, core earnings would be Bt843m, up 20% YoY and 40% QoQ. The core number was 26% above our expectation (and 46% better than the consensus’ estimate), due to a fatter GM and higher sales than anticipated.