Earnings Report /
Thailand

Sansiri PCL: Strong 2Q21 result; unexciting outlook for 3Q21

  • In line with our estimate, but above the consensus

  • SIRI reported a net profit of Bt662m for 2Q21

  • We expect 3Q21 core earnings to decline YoY and QoQ

Bualuang Securities
17 August 2021

The street-beating 2Q21 result should boost market sentiment toward SIRI. The stock currently trades at a 2022 PER of 7.6x (still below our ResProp coverage mean of 8.1x) and a 48% discount to actual end-June 2021 BV of Bt2.23/share (excluding a Bt5bn perpetual bond). If XPG (in which SIRI holds 14%) were to announce an exciting business plan involving digital assets, we would expect the market to also bid up SIRI. Our BUY call stands to a YE22 target price of Bt1.60, pegged to a PER of 10.5x.

In line with our estimate, but above the consensus

SIRI reported a net profit of Bt662m for 2Q21. Excluding a Bt3m reversal of an impairment on a project, core earnings would be Bt659m, up by 107% YoY and 75% QoQ. The core result was in line with our estimate but was 17% ahead of the consensus (core margin was fatter than the street assumption).