Earnings Report /
Thailand

Siam Makro PCL: Slight miss for 2Q22

  • Profit was 5% below our estimate (3% above the street)

  • MAKRO reported a 2Q22 core profit of Bt1,573mn

  • Revenue totaled Bt117,933m (up by 116% YoY and 7% QoQ)

Bualuang Securities
9 August 2022

MAKRO currently trades at a 2023 PER of 24.2x. We believe the market has already priced in a weak 2022 earnings growth outlook, so downside risk to the stock price appears limited at this point. The trough of the year looks set to be 3Q22, so any share price weakness resulting from weak market expectations for 2022 profit would open an opportunity to take positions ahead of a strong 4Q22 recovery.

Profit was 5% below our estimate (3% above the street)

MAKRO reported a 2Q22 core profit of Bt1,573mn, up 22% YoY but down 23% QoQ. The number was 5% below our estimate (but was 3% above the Bloomberg consensus), as SG&A and interest expenses were higher than we had assumed.