Earnings Report /
Thailand

Ananda Development PCL: Deep loss, deep miss

  • Missed all estimates

  • ANAN reported a 2Q20 core loss of B575m

  • The result was far deeper into the red than our core loss estimate of Bt44m

Bualuang Securities
13 August 2020

Keep aside from this stock for the moment, as it will correct in the wake of its disappointing 2Q20 result (a consensus forecast downgrade will also follow). We don’t expect a dividend for 2020, given ANAN’s core loss and high expected YE20 net gearing ratio of 1.3x. However, it trades at a very low YE20 PBV of 0.4x (excluding perpetual bonds). Our HOLD call stands. We have rolled over our investment horizon to 2021 with a new target price of Bt1.4 (pegged to a PER of 7x).

Missed all estimates

ANAN reported a 2Q20 core loss of B575m, against a core profit of Bt170m for 2Q19, and a loss of Bt135m for 1Q20. The result was far deeper into the red than our core loss estimate of Bt44m (the street had expected a loss of Bt140m), due to a heavy loss for construction services.