We like AP for its potential to beat our current 2022 forecast and its compelling valuation. The stock trades at a cheap 2022 PER of 6.2x, a substantial discount to its 2006-21 mean of 7.0x. Our BUY call stands to a YE22 target price of Bt13, pegged to a PER of 8x.
Beat our estimate (but in line with the consensus)
AP posted 2Q22 core earnings of Bt1.6bn, up 41% YoY but down 9% QoQ from the record high marked for 1Q22. The result beat our estimate by 10% (equity-sharing from JV projects was 89% higher than we had assumed), but was in line with the consensus.