Earnings Report /
Thailand

Quality Houses PCL: Missed our estimate, but was in line with the consensus

  • Below our expectation, but in line the consensus

  • QH posted a 2Q20 net profit of Bt458m

  • The result was in line the street model

Bualuang Securities
11 August 2020

The stock price looks set to range-trade near Bt2.20, given the value of QH’s stakes in associates—HMPRO (20% holding), LHFG (14%), QHPF (26%), and QHHR (31%). Note that we have attached a 20% discount to the market value of about Bt30bn of its investments in SET-listed associates in our valuation model. We expect a good dividend yield of 7.1% for 2020 enabled by a clean balance sheet. Thus, stock price downside is limited. Our HOLD rating stands with an SOTP-derived target price of Bt2.30 (a targeted residential PER of 5x).

Below our expectation, but in line the consensus

QH posted a 2Q20 net profit of Bt458m, down by 27% YoY and 10% QoQ. The result was in line the street model, but was 8% below our estimate, as rental & service revenue and equity income were lower than we had assumed. QH announced a DPS of Bt0.04 for 1H20, a 1.9% simple yield (XD Aug 24, payment Sep 8).