The disappointing 4Q22 result may generate negative sentiment for the share price in the short-term. Nevertheless, SCGP’s 1Q23 prospects look increasingly favorable. Moreover, there is a scope for upside to our forecasts and valuation from new investments/acquisitions. If the share price retreats, we view this as an opportunity to accumulate the stock. Our BUY rating stands.
Missed all estimates
SCGP reported a 4Q22 net profit of Bt449m, down 79% YoY and 76% QoQ. Stripping out a Bt413m FX loss, core earnings would be Bt862m, down 33% YoY and 46% QoQ. The result was 64% below our forecast and that of the consensus, due to lower margins than expected. SCGP announced 2H22 DPS of Bt0.35, implying a simple yield of 0.6% (XD: 4 Apr, payment: 24 Apr).