Equity Analysis /
Thailand

TH : S Hotels and Resorts - Entering high season in 2H22F

    CGS-CIMB
    10 August 2022
    Published byCGS-CIMB

    SHR core net loss narrowed in 2Q22 to THB111m (vs. THB199m in 1Q22). Core loss missed our forecast by 10% due to a THB30m tax expense. Despite 2Q being a low season in the Maldives, EBITDA margin rose from 15% in 1Q22 to 18% in 2Q22 from revived hotel operations in other regions. We reiterate our Add rating on SHR with a higher TP of THB6 (15x FY23F EV/EBITDA, -1.0 s.d. from 5-year mean of Thai hotel sector pre-Covid-19).