Siam Commercial Bank
The money-making machine OUTPERFORM - Maintained Share Price: Bt140.50 Target price: Bt175.00
Siam Commercial Bank Plc (SCB)
SCB’s Q1 2012 core net profit exceeded our expectation by 20% and marks a new quarterly record.
The revenue/cost items and asset quality indicators point to a smooth road ahead while new loans continue to pour in,
suggesting that good times are far from over. We revise up our FY12-14 net profit forecasts following cuts to our credit cost and opex estimates.
Our target price is also raised on a higher P/BV target of 2.8x (vs. 2.6x previously), derived from GGM (17.2% ROE, 11.7% COE, 8.6% growth).
Maintain Outperform.
