Earnings Report /
Thailand

Siam Cement: Street-beating 1Q22 profit; earnings softness expected for 2Q22

  • Above estimates

  • SCC reported a 1Q22 net profit of Bt8,844m

  • SCC’s 2Q22 core profit looks set to soften YoY and QoQ

Suppata Srisuk
Suppata Srisuk

Equity Research Analyst

Bualuang Securities
28 April 2022

Despite the dull outlook for 1H22, SCC’s earnings look set to rebound in 2H22, boosted by improvements across all businesses. Moreover, SCC’s current valuations are a bargain—trading at a YE22 PBV of 1.1x (1.7SD below its long-term average of 2.2x)—with a good 2022 dividend yield of 4.4% (against 2.6% for the SET).

Above estimates

SCC reported a 1Q22 net profit of Bt8,844m, down by 41% YoY but up 6% QoQ. Stripping out extra items, core earnings would be Bt7,764m, down by 44% YoY but up 6% QoQ. The result was 13% above our estimate, due to better Cement & Building Materials (CBM) and Packaging earnings than expected (and 6% above the consensus).