Earnings Report /
Thailand

Ananda Development PCL: Deep red ink

  • Deep miss

  • ANAN reported a net loss of Bt252m for 3Q21

  • We expect the 4Q21 bottom-line to be written in black ink

Phoowadol Phoosodngern
Bualuang Securities
12 November 2021

The stock price will come under further pressure, due to liquidity risk concerns. ANAN may trade near the RO price of Bt1.55. Our HOLD call stands with a post-RO YE22 target price (25% dilution from the RO, not including ANAN-W1) of Bt1.50, pegged to a PER of 13.5x (a 10% discount to 15.2x, ANAN’s long-term mean).

Deep miss

ANAN reported a net loss of Bt252m for 3Q21, against net profits of Bt292m for 3Q20 and Bt9m for 2Q21. The number was deeper into the red than our estimate of a loss Bt52m (the consensus projection was a loss of Bt162m), due to lower revenue from project management than assumed and because a loss was marked on an investment in a JV.