Earnings Report /
Thailand

Berli Jucker Public Company Limited: Miss, due to heavy SG&A expenses

  • Missed our estimate

  • BJC reported 3Q22 core earnings of Bt890m

  • 3Q22 sales totaled Bt36,874m

Bualuang Securities
10 November 2022

BJC currently trades at a 2023 PER of 23.2x, close to 2SDs below its historical mean. We believe the risk/reward trade-off is attractive. Our BUY call stands with a slightly revised DCF-derived YE23 target price of Bt39.50 (previously Bt40).

Missed our estimate

BJC reported 3Q22 core earnings of Bt890m, up 143% YoY but down 23% QoQ. The number was 11% below both our estimate and the consensus, due mainly to heavier SG&A expenses than assumed. Including an FX gain, BJC’s NPAT was Bt932m, up 154% YoY but down 23% QoQ. Although SG&A expenses were surprisingly high, BIGC’s GM and rental income recovered, driving YoY profit growth. BIGC comprised 62% of BJC’s 3Q22 sales; BIGC’s same-store sales declined 2.4% (excluding B2B sales, SSS dipped only 0.5%).