We suggest investors Buy on dip. Despite disappointing result, we expect 1-2% share price correction in the short-term given a 21% sharp share price fall from 4-months high at Bt156 on July 15, 2021. CBG trades at a 2022 PER of 29.9x, below 36.0x for its long-term mean. We maintain BUY a new YE22 DCF target price of Bt155 (down from Bt160 to reflect new model), 6.5% WACC and 2.0% terminal growth.
Short of all estimates
CBG reported core profit of Bt601m for 3Q21, down 34% YoY and down 38% from all-time high core profit of Bt967m in 2Q21. The result fell short of our estimate by 8% due to disappointing GM (actual 34.1% versus our forecast of 38.0%), and 12% below the consensus forecast due to disappointing sales and margins.