We have a BUY call on SAWAD, even though we now expect 2022 earnings to decline 4.6% YoY, following changes to our model. But the stock currently trades at a cheap 2022 PER of 15.6x (1.1SD below its long-term mean), which we believe anticipates the negative effects of higher inflation. BUY!
Profit was 16% below our estimate
SAWAD posted 2Q22 earnings of Bt1.04bn, down 6% YoY but up 1% QoQ. The result was 16% below our estimate (and 9% shy of the Bloomberg consensus), due mainly to heavier OPEX and lower non-NII than expected. Pre-provision operating profit came to Bt1.5bn, flattish YoY but up 8% QoQ. 1H22 earnings comprise only 39% of our old full-year forecast of Bt5.3bn.