Earnings Report /
Thailand

Ananda Development PCL: Core loss for 1Q21; look to turnaround in 2Q21

  • Deep miss

  • ANAN reported a net profit of Bt5.5m for 1Q21

  • Our model points to a modest net profit for 2Q21

Bualuang Securities
12 May 2021

ANAN’s disappointing 1Q21 result may trigger a share price correction. But we still anticipate a strong rebound, 2H21 through 2022. The stock currently trades at 28% below the end-March BV of Bt2.90/share (excluding a Bt6bn perpetual debenture). Our BUY call stands to a YE21 target price of Bt3, pegged to a PER of 15x.

Deep miss

ANAN reported a net profit of Bt5.5m for 1Q21, against NPAT of Bt150m for 1Q20 and a net loss of Bt74m in 4Q20. Excluding a Bt22m net gain from divesting a software business and a Bt9m reversal of a provision tied to winding up the construction biz, the core loss would be Bt26m (against a retroactively restated 1Q20 core profit of Bt70m). Our 1Q21 core profit estimate was Bt59m (the street number was Bt48m).