Big C Supercentre

Big C Supercentre Plc (BIGC)
 

We turn positive on BIGC following rock-solid 4Q11 results, which we believe were boosted by gains from ongoing integration. A sector laggard, its valuation looks undemanding at 16.6x CY12 P/E vs. the sector’s 24x, hence representing an attractive point of entry. A positive margin surprise led the FY11 core net profit to form 126% of our estimate. Thus, we raise our EPS forecasts for CY12-14. This lifts our DCF-based target price (8.5% WACC, 1% LTG) and our call is upgraded from Neutral to OUTPERFORM.