Equity Analysis /
Thailand

SC Asset Corp PCL: New condo brand could boost 2Q22 presales

  • Strong bookings expected for new condo brand

  • Achievable presales target

  • Profit growth expected for 2Q22

Phoowadol Phoosodngern
Bualuang Securities
22 June 2022

SC’s new condo brand, Reference, could boost 2Q22 presales, but that is likely to prove a temporary phenomenon. Although we expect a strong 2Q22 result, we see some risk to the 2H22 earnings outlook (especially in 4Q22). However, SC currently trades at a 2022 PER of 6.0x, 13% below its long-term mean, so further price weakness should be limited. Our HOLD call stands to a new SOTP-derived YE22 target price of Bt3.90.

Strong bookings expected for new condo brand

Reference Sathorn-WongwianYai is a new condo design and brand with a project value of Bt4.0bn. It targets the Gen-Y demographic (people born between 1981 and 1996) and is located only 130 meters from the Wongwian Yai BTS station, so has fairly easy access to central Bangkok. SC Asset has positioned the Reference brand below Centric (upper-mid range) and The Crest (high-end).  The project’s soft opening for bookings is June 25-26. We expect a strong initial take-up rate of 20-25% (Bt800-1000m in presales) in 2Q22.