Earnings Report /
Thailand

Index Livingmall PCL: Black ink for 2Q20; set for recovery in 3Q20

  • Beat our estimate modestly

  • The profit slump was due to a sales slide

  • Sales GM was 42.7%, down from 44.2% in 2Q19 and 45.9% in 1Q20

Bualuang Securities
10 August 2020

The stock price should gradually recover, now that the 2Q20 result has proved black ink and on confidence that the numbers will improve materially through 2H20. ILM currently trades at a 2021 PER of 11.4x (far below the levels of comparable peers—33.9x for HMPRO and 36.3x for GLOBAL). Our BUY call stands to a YE20 DCF-derived target price of Bt17, pegged to a 20% discount to DCF value (7.5% WACC and 2.0% terminal growth).

Beat our estimate modestly

ILM posted a core profit of Bt14m for 2Q20, down by 91% YoY and 88% QoQ. We had modeled for core earnings of only Bt10m. Note that the firm won’t pay a dividend for 1H20.