Given that 21% of ANAN’s YE21 presales backlog is tied to Chinese buyers, we have a HOLD call with a target price of Bt1.30. We suggest waiting out for stronger residential transference in 3Q22 (the heavy project launch schedule will push up SG&A expenses), then the stock should be re-considered as a turnaround play.
Net loss wasn’t as deep as consensus estimate
ANAN reported a net loss of Bt43m for 2Q22, against net profits of Bt9m for 2Q21 but net loss of Bt281m for 1Q22. Excluding the discontinue business of loss Bt2m, the 2Q22 core loss was Bt41m, against core loss of Bt42m in 2Q21 and core loss of Bt279m in 1Q22. The result was shallower than our expectation of a Bt51m core loss and the consensus estimate of a Bt58m core loss.