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Eastern Polymer Group PCL: Core 4Q20 earnings missed; stronger quarter ahead

  • NPAT in line with estimate; core profit below forecast
  • EPG reported a 4Q20/21 (Jan-Mar) net profit of Bt404m
  • EPG’s core earnings look set to expand YoY and QoQ in 1Q21/22

We expect core profit growth to sustain momentum through 1Q21/22 and FY21, with better performance across all key businesses. Over the longer view, there would be scope for upside to EPG’s earnings profile if demand were to recover more strongly than modeled. The stock trades at an FY21 PER of 25.1x (close to its long-term mean of 24.7x).

NPAT in line with estimate; core profit below forecast

EPG reported a 4Q20/21 (Jan-Mar) net profit of Bt404m (up 64% YoY but down 6% QoQ). Stripping out extra items, core earnings would be Bt356m, up by 83% YoY but down 14% QoQ. While the net profit was in line with our forecast (but 7% below the consensus), core earnings were 14% below our projection, due to lower GM than expected and higher SG&A expenses than modeled. EPG announced the interim dividend for its 2H20/21 operation of Bt0.19/share, implying a simple yield of 1.6% (XD: Aug 3; payment: Aug 20).


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