Our HOLD rating stands with a YE22 target price of Bt4.80, pegged to a PER of 10x (LPN’s long-term mean), due to the uncertainty surrounding project launches and diminished purchasing power among low-income demographics (the core market for LPN’s projects). The market may react positively to the interim dividend announcement, but we would expect that to prove only a short-term phenomenon.
In line with our estimate and the consensus
LPN reported a 2Q22 net profit of Bt147m, up 22% YoY but down 23% QoQ. The result was in line with our estimate and the street. LPN also announced an interim DPS of Bt0.10 for 1H22 (in line with our expectation), a 2.2% simple yield (XD Aug 17, payment Sep 1).