Our TRADING BUY rating stands with a target price of Bt20, premised on the impressive outlooks for dry bulk shipping and PSL’s bottom-line in the short- to mid-term.
Big beat for 4Q21
PSL posted a decade-high 4Q21 net profit of Bt1,773m, up by 6,364% YoY and 18% QoQ. The reported bottom-line beat our estimate by 55% (higher T/C rates than assumed) and the consensus by 43%. Stripping out extra items, the core number would be Bt1,761m, up by 2,637 YoY and 14% QoQ (also a decade-high). Core earnings beat our estimate by 38% (a higher T/C rate than assumed) and the street by 42%.
Note that PSL will pay dividends of Bt0.50/share (XD Feb 28, payment Mar 11) and Bt0.25/share (XD Apr 11, payment Apr 28), implying a total simple yield of 4.3%.