We still suggest standing aside from PSH for the moment, as its outlook for this year is poor. The firm looks set to miss its current presales and revenue targets by 25-30%. There is 10-15% downside risk to the current consensus earnings forecast, we believe. However, the stock trades at a low YE20 PBV of 0.6x, so we maintain a HOLD call, but with a downsized target price of Bt11.50, pegged to a PER of 8x (0.5SD below PSH’s 2006-19 mean).
Missed our estimate (but in line with the consensus)
PSH reported a 2Q20 core profit of Bt417m, down by 58% YoY and 55% QoQ. The result was in line with the street, but missed our estimate by 16%, due largely to a higher SG&A/sales ratio than assumed (21.7% actual; we had assumed only 20%). PSH announced a DPS for 1H20 of Bt0.31, a 2.7% simple yield (XD Aug 25, payment Sep 8).