Equity Analysis /
Thailand

Thailand (Bualuang): Residential Property - ResProp face-off—LH against PSH

  • Business models

  • 2Q22 launch and presales outlooks

  • 1Q-2Q22 earnings profiles

Phoowadol Phoosodngern
Bualuang Securities
26 April 2022

We’ve created a series of face-offs for our ResProp coverage. The first battle is LH against PSH, the leading low-rise players. We currently prefer LH because its target customer demographics were less financially affected by COVID-19 and its recurring business revenues will recover in tandem with Thailand reopening. Also, PSH’s profit will be squeezed by start-up costs for its new hospital (things could improve for PSH in 3Q22).

Business models

LH and PSH are the two biggest low-rise developers—at YE21 low-rise comprised 79% of LH’s units available for sale and 82% of PSH’s units available for sale. But LH has more revenue streams—apartment buildings and hotels (6% of its 2021 top-line and 16% of the 2019 number). PSH’s 2021 revenue was 99% home sales. With Thailand re-opening, LH’s non-core operations should post stronger earnings, while PSH’s Vimut Hospital will mark a loss.