Beyond the COVID-19 recovery story, AWC is a growth play—12 new hotels that will open across Thailand, 2023-26, suggesting profit growth ranging 22-48% for those years. BUY for the long haul.
Core loss was deeper than expected
AWC reported a 2Q22 core loss of Bt382m (against core losses of Bt758m for 2Q21 and Bt523m for 1Q22). The red ink was deeper than our estimate of a Bt126m loss (the consensus loss projection was Bt177m), due to lower hotel revenue than assumed. The core loss excluded gains on the fair value of investment properties of Bt1.2bn in 2Q22 and Bt559m in 2Q21.