Earnings Report /
Thailand

Erawan Group PCL/The: Deeper loss than we had expected

  • Core loss was deeper than our estimate, but was in line with street

  • ERW reported a 2Q22 core loss of Bt151m

  • Hotel revenue was Bt961m in 2Q22

Bualuang Securities
15 August 2022

The bottom-line bottomed out in 2021 and we anticipate a swift recovery through 2H22. Our rating is BUY to a YE22 DCF-derived target price of Bt4.50.

Core loss was deeper than our estimate, but was in line with street

ERW reported a 2Q22 core loss of Bt151m (against core losses of Bt559m for 2Q21 and Bt315m for 1Q22). The red ink was deeper than our projection, due to lower revenue than assumed.