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SC Asset Corp PCL: In line; solid growth outlook for 2Q21

  • In line with our estimate and the consensus
  • SC reported a core profit of Bt417m for 1Q21
  • The YoY core profit growth was driven by higher sales and a lower SG&A/revenue ratio

The stock is likely to trade sideways, as it has rallied 12% YTD (twice the 6% mean YTD rise of our ResDev coverage), pricing in YoY earnings growth in 1Q21 and the strong 2Q21 outlook, in our view. SC’s 2021 PER is 7.8x, above its 2006-20 mean of 6.9x. Our HOLD call stands with an SOTP-derived target price of Bt3, pegged to a residential biz PER of 6.5x and rental market value of Bt1.0/share (a 30% discount to appraised value).

In line with our estimate and the consensus

SC reported a core profit of Bt417m for 1Q21, up 39% YoY but down 9% QoQ. The result was in line with our estimate and the street.


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