Earnings Report /
Thailand

Quality Houses PCL: Miss for 2Q22

  • Profit missed our expectation and the street

  • QH posted 2Q22 net and core earnings of Bt515m

  • QH will deliver YoY and QoQ core earnings growth for 3Q22

Bualuang Securities
10 August 2022

In the short run, the stock may come under pressure, following the weak 2Q22 result. But we expect QH’s investment portfolio—stakes of 20% in HMPRO, 14% in LHFG, 26% in QHPF, and 31% in QHHR—to support the share price. Our HOLD rating stands with an SOTP-derived target price of Bt2.50, pegged to investment value of Bt2.20/share (a 15% discount to market value) and a targeted residential PER of 9.0x.

Profit missed our expectation and the street

QH posted 2Q22 net and core earnings of Bt515m, up 7% YoY but down 12% QoQ. The core number was 7% below our estimate (a fatter GM and lower profit-sharing from associates than we had assumed) and was 7% shy of the consensus.