Supalai
Profit quadruples on robust sales
SPALI TB / SPAL.BK | OUTPERFORM - Maintained | Share Price THB11.50 - Tgt. THB15.10
Property Development | - by Wattaipun EKATAKSIN
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Despite the intensifying floods in late 3Q11, SPALI showed resilient net profit growth backed by healthy sales, sustained high gross margins and tight cost control. Outlook remains challenging but SPALI is well prepared through diversification and a strong balance sheet. 3Q11 EPS was 6.5% above consensus, but broadly in-line with our estimate. 9M11 was 71% of our FY11 estimate. We cut FY11-13 EPS by 11-15% due to the floods and our new target price, based on 7.0x CY13 P/E vs. previous 8.0x CY12 P/E, is cut to THB15.10. OUTPERFORM maintained.
