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.