Large loss in 2Q20 with slow recovery in 3Q20 entails a negative effect on the share price. We recommend investors wait for good timing and valuations. Valuations are not attractive at a 2021 PER of 30.0x, far above 25.0x of its long-term mean since IPO in 2013. We maintain HOLD rating at a YE21 DCF-derived target price of Bt55 (cut from Bt63 to reflect earnings downward revision (10% discount to DCF value based on 7.4% WACC and 2.0% terminal growth rate).
Below our estimate and the consensus forecast
M reported a net (core) loss of Bt247m in 2Q20 versus core profits of Bt689m in 2Q19 and Bt340m in 1Q20. The result was in line with our loss forecast of Bt283m (no consensus forecast). A positive surprise for us (we expected no interim DPS for 1H20), was M’s interim DPS of Bt0.50, 1.0% simple yield, XD on Aug 24 and payment on Sep 10.