Sansiri Public Co

WEDNESDAY, MAY 23, 2012
Sansiri Public Co

Turnaround intact OUTPERFORM - Maintained Share price: Bt2.00 Target price: Bt2.75

Sansiri Public Co Plc (SIRI) 
Strong YTD presales and a surprisingly high 34% gross margin in 1Q12 prompted SIRI to raise its FY12 presales target
by 12% and gross margin by 100bp. The market seems to have turned positive too, with consensus FY12 numbers overtaking our once most-bullish view. We expect sequential improvements in EPS from 1Q12 and peaking in 4Q12.
We keep our forecasts and target price (still based on 7.5x CY13 P/E, +1 SD reflecting its step-up to be the top developer by turnover) unchanged.

Reiterate Outperform; SIRI remains our top pick for its convincing turnaround, attractive valuation and yield of 7-8%.