Sino-US trade conflict looks set to persist long after COVID-19 fades as an issue, so we anticipate substantial production relocation from China to other jurisdictions—chiefly to Vietnam and Thailand. Once Thailand’s quarantine requirement is lifted, WHA should start reporting much heavier land bookings, followed by substantially higher earnings (IE stock prices tend to be driven by land bookings rather than recognition of land sales revenue). BUY!
Result missed our estimate
WHA posted a 1Q21 bottom-line of Bt135m, up 36% YoY but down 91% QoQ. Reported NPAT was 55% below our estimate (a slimmer GM and a bigger FX loss than assumed), but the number was 9% ahead of the consensus. Stripping out extra items, core earnings would be Bt184m, down by 6% YoY and 87% QoQ. The core numbers was 38% below our estimate (a slimmer GM than assumed), but was 35% ahead of the consensus.