ab 14 August 2024 Global Research and Evidence Lab First Read BTS Group Q125: Deeper net loss vs expectations How did the results compare vs expectations? BTS reported its pre-ex net loss of Bt382m, widening from a core net loss of Bt127m in Q124, excluding the impact of one-time impairment of its subsidiary investment reported in Q124. This result missed our estimate of a Bt170m net loss for the quarter. We attribute the miss vs our estimate to a weaker EBITDA contribution from the MIX (Media and digital s ...

ab 15 August 2024 Global Research and Evidence Lab First Read Qifu Technology A clean beat underpinned by robust asset quality Q: How did the results compare vs expectations? QFIN reported Q224 non-GAAP net income of Rmb1,417m, +17% QoQ and beat company guidance by 13%. Despite muted top-line growth (flattish QoQ), operating profit showed much stronger momentum (+46% QoQ), primarily driven by a sizable write-back of past prudent provisions (Rmb480m) after asset quality showed continued improvement YTD. With ...

ab 15 August 2024 Global Research and Evidence Lab First Read Ayala Corp H124: Strong results across all core subsidiaries How did the results compare vs expectations? Ayala Corporation (AC) reported Q224 core net profit of P12.5bn (+6% QoQ and +12% YoY), bringing H124 core net profit to P24.3bn, up 18% YoY and slightly ahead at 52% of VA consensus and UBS estimates. AC's results were driven by strong YoY growth in the core net incomes (stand-alone) of its core subsidiaries: BPI (+22% as higher NIM and abov ...

ab 14 August 2024 Global Research and Evidence Lab First Read Srisawad Corporation Q224A: profit beat on asset quality improvement Q: How did the results compare vs expectations? A: Net profit of Bt1.3bn (+14% yoy, +3% qoq) was in line with BBGe of Bt1.3bn and beat UBSe of Bt1.14bn by 14%. The earnings beat came from lower-than-expected loss on car repossession and provision expense. Overall result shows that asset quality control began to shore up profit growth. H124 profit accounts 48-50% of BBG/UBS full ...

ab 14 August 2024 Global Research and Evidence Lab First Read Osotspa PCL Q224: Earnings in line after excluding one-off impairment How did the results compare vs expectations? Osotspa (OSP) reported Q224 net profit of Bt604m (-28% QoQ, +10% YoY), below both consensus and UBS estimates on higher than expected one-off impairment from the divestment in non-core business. Excluding this, core net profit came in at Bt923m (+11% QoQ, +68% YoY), in line with UBS and consensus estimates. Similarly, both top line a ...

Investment Rating - The report maintains a "Sell" rating for Airports of Thailand (AOT) with a 12-month price target of Bt54.00, while the current price is Bt55.75 [7][21]. Core Insights - AOT reported a Q324 pre-tax net profit of Bt4.6 billion, representing a 42% year-over-year increase but a 21% decrease quarter-over-quarter. This result was in line with consensus estimates and 7% above the report's estimates [2][3]. - Aeronautical revenue increased by 29%, driven by a 34% year-over-year rise in departure passenger service charge (PSC) revenue, as tourist volume grew by 16% year-over-year. Concession revenue surged by 39% year-over-year, primarily due to higher duty-free minimum guarantee revenue [3][9]. - The EBITDA margin expanded by 2 percentage points year-over-year to 56%, attributed to improved operating leverage and a decline in utility costs [3][9]. Summary by Sections Financial Performance - Q324 revenue was Bt16.4 billion, a 27% increase year-over-year, while the operating cost was Bt7.2 billion, up 22% year-over-year. The EBITDA for Q324 was Bt9.2 billion, reflecting a 31% increase year-over-year [9]. - The net profit for Q324 was reported at Bt4.6 billion, a 45% increase from the previous year, with an adjusted net profit of Bt4.6 billion, marking a 42% year-over-year increase [9]. Revenue Breakdown - Aeronautical revenue for Q324 was Bt7.8 billion, a 29% increase year-over-year, while concession revenue reached Bt5.8 billion, a 39% increase year-over-year [9]. - The passenger service charge revenue was Bt6.2 billion, up 34% year-over-year, indicating strong recovery in passenger traffic [9]. Outlook and Guidance - No new guidance was provided by the company, with an analyst meeting scheduled for 15 August to discuss the outlook and updates on transit PSC adoption and expansion plans [4]. Valuation and Market Metrics - The report indicates that AOT lacks re-rating catalysts beyond short-term trading sentiment, maintaining a DCF-based price target of Bt54.00 [5][7]. - The forecasted stock return is -1.7%, with a forecast dividend yield of 1.4% [10]. Company Overview - Airports of Thailand operates six major airports in Thailand, handling about 90% of the country's air traffic and servicing over 130 scheduled airlines. The revenue split is approximately 57% aeronautical and 43% non-aeronautical [11].

ab 14 August 2024 Global Research and Evidence Lab First Read Wilmar International Cautiously optimistic of a better 2H Cautiously optimistic tone from the briefing Management's tone from the analyst briefing this morning appeared to be cautiously optimistic. Poor milling margins and weaker contribution from JV/associates (-58% YoY) were identified as key weaknesses in 1H's performance, to which Wilmar expects to improve going forward given lower raw material prices, as well as absence of certain one-off co ...

ab 14 August 2024 Global Research and Evidence Lab Thai Oil Q224 meeting feedback and upcoming UBShosted expert call Thai Oil (TOP) hosted its Q224 analyst meeting on 14 August. Overall, there were no material new developments to alter our views in the near term. Please see some of key highlights below. Also, UBS is hosting an Expert Call: Refining margin outlook and clean fuel project's (CFP) start-up discussion on 22 August at 3pm Bangkok time. Join our discussion for an expert view from Kpler, one of the ...

ab 14 August 2024 Global Research and Evidence Lab Medtronic PLC Diabetes Turnaround Sustainable, Clearing Path to MSD Sales Growth; U/G to Neutral CGM Partnership Potentially Transformative for MDT Diabetes We are upgrading MDT to Neutral from Sell as we now have higher conviction that the recent Diabetes turnaround is sustainable. With Diabetes representing just under 10% of MDT's sales but also one of MDT's higher growth end markets, this business is critical to MDT's top-line growth trajectory. With thi ...

ab 14 August 2024 Global Research and Evidence Lab Cardinal Health Inc Wrap: Positive Financial and Strategic Updates To Start FY25; Upping PT to $125 (from $120) UBS View: Near-Term Optics Challenged By Optum Fallout But Don't Lose Sight of Big Picture The most important takeaways from the F4Q print are (1) manageable fallout from the Optum loss, (2) the underappreciated earnings power of new contract wins and existing business expansion, and (3) solid cash flow generation that provides relative operationa ...