Sansiri
Play
When pain turns to gain Outperform - maintained Share price: Bt 1.87 Target price: Bt 2.75
Sansiri Plc (SIRI)
FY11 net profit may surprise on the upside despite the severe floods in 4Q11. SIRI expects an even more aggressive 30-40% revenue growth over FY12-13 thanks to its strong brand equity. Even on a fully diluted basis, we expect EPS to stabilise in FY12 and rebound by 60% in FY13. We raise our FY11-13 EPS by 4-12% for possible stronger FY11 results, rising backlog, improving SG&A and lower FY11 tax rate. Combined with rerating potential, we raise our target price by 29% to THB2.75, now based on 7.5x CY13 P/E (from 6x). Reiterate Outperform.
