Earnings Report /
Thailand

SCG Packaging PCL: Street-beating 1Q21 earnings; YoY growth expected for 2Q21

  • Above all estimates

  • SCGP reported a 1Q21 net profit of Bt2,135m

  • Demand for packaging looks set to strengthen further through 2Q21

Suppata Srisuk
Suppata Srisuk

Equity Research Analyst

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Bualuang Securities
28 April 2021

Expectations of YoY core earnings expansion in 2Q21 together with SCGP’s strong prospects—swift demand growth tied to e-tail and food delivery service expansion—should drive up the share price going forward. Moreover, there’s scope for earnings and target price upside from potential future investments and/or acquisitions. BUY!

Above all estimates

SCGP reported a 1Q21 net profit of Bt2,135m, up by 23% YoY and 44% QoQ. Stripping out a Bt102m loss on FX, core earnings would be Bt2,236m, down 31% YoY but up 62% QoQ. The result was somewhat above our estimate (28% above the consensus), due to higher sales, a fatter EBITDA margin, and lighter interest expenses than modeled.