Siam Cement
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Patience will be rewarded OUTPERFORM - Maintained Share price: Bt334.00 Target price: Bt411.00
Siam Cement Plc (SCC)
The weak Q1 2012 earnings, reflecting poor margins across all businesses, were not unexpected. While Q2 2012 earnings should rebound on improved margins and volume, we believe a true turning point will be in Q3 2012 when earnings recovery is driven by a sharp rise in margins. Q1 2012 net profit was in line, making up 17% of our full-year forecast and 18% of consensus numbers. We maintain Outperform, EPS forecasts as well as our DCF-based target price with 7.5% WACC.
