SVI comes with risks associated with the global economic slowdown, supply chain issues, and geopolitical tensions. The potential cycle peak and limited upward earnings revision breadth may create downside risks into 2022-23. Moreover, after strong 1H22 profits, the firm will enter a soft earnings phase for at least four quarters, 3Q22-2Q23. We recommend a wait-and-see stance for now.
2Q22 core earnings were in line with our forecast
SVI posted a 2Q22 net profit of Bt422m, up by 155% YoY and 61% QoQ. Stripping out a Bt54m FX gain and a Bt77 gain from divestment, core earnings would be Bt290m, up by 94% YoY and 36% QoQ. The core number was in line with our estimate and the consensus projection.