Earnings Report /
Thailand

Srisawad Corp PCL: Result miss

  • Profit was 14% below our estimate

  • SAWAD posted 3Q21 earnings of Bt1.11bn

  • 3Q21 gross loans rose 3.5% QoQ but slid 12.1% YoY

Poramet Tongbua
Poramet Tongbua

Equity Research Analyst

Bualuang Securities
15 November 2021

We have trimmed our 2022 earnings forecast by 7% to Bt5.5bn (up 14% YoY), due to diminished expectations for profit-sharing from associate (FM), but we remain optimistic about SAWAD’s outlook, as its loan growth. Also, we expect fee income to expand in tandem with rising sales of insurance products and the cost/income ratio to decline. Our YE22 target price slips from Bt86 to Bt78 (pegged to a PBV of 3.6x), but our BUY call stands.

Profit was 14% below our estimate

SAWAD posted 3Q21 earnings of Bt1.11bn, down 8% YoY but flattish QoQ. The result was 14% below our projection and 4% shy of the Bloomberg consensus, due mainly to lower NII than expected and a loss at an associate (we had expected Fast Money Co Ltd (FM) to mark a profit, but it reported a loss). Pre-provision operating profit came to Bt1.4bn, down by 7% YoY and 4% QoQ. Earnings for 9M21 comprise 68% of our old full-year forecast of Bt5.3bn.