Although BAY reported a plunge in earnings for 4Q20, we are optimistic that its bottom-line will recover going forward, supported by lighter LLPs and an extra gain from selling a stake in NTL. That said, the stock price currently exceeds our YE21 target of Bt26.50, so we maintain a HOLD call for the moment.
Earnings were 18% below our expectation
BAY reported a 4Q20 profit of Bt3.4bn, down by 47% YoY and 45% QoQ. The result was 18% below our estimate and 41% short of the Bloomberg consensus. Pre-provision operating profit was Bt14.7bn, down by 8% YoY and 10% QoQ. 2020 earnings dived 30% YoY to Bt23.0bn, which represents 97% of our full-year projection of Bt23.8bn.