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.