The improved market outlook should boost TOP’s operational performance this year. Furthermore, expectations of strong YoY core earnings growth through 3Q22 should boost TOP’s share price going forward. And its valuation is still undemanding—a YE22 PBV of only 0.7x (1.5SD below its long-term mean). Our BUY rating stands.
Net profit beat estimates; core profit in line
TOP reported a 2Q22 net profit of Bt25,327m, up 12-fold YoY and 253% QoQ. Stripping out extra items, the core profit would be Bt16,377m, up 15-fold YoY and 392% QoQ. While the core profit was in line with our forecast, the bottom line was 12% above our estimate (20% above the consensus’) due to higher extra gains than expected.