News Update

August 7, 2019

Previous News

THREL's 2Q19 result: Below expectation

2Q19 results: Below estimates. 2Q19 earnings sank 48% YoY and 18% QoQ to Bt48mn, 18% below estimates. The miss came chiefly from lower-than-expected premium growth and higher-than-expected combined ratio. Net earned premium for 2Q19 slipped 2% YoY and 4% QoQ. Combined ratio for 2Q19 rose 12.89 ppt YoY and 5.03 ppt QoQ to 95.96% in 2Q19, mainly due to a higher loss ratio (+13.98 ppt YoY, +12.18 ppt QoQ, though partly offset by an ease in commission ratio (-1.72 ppt YoY and -7.69 ppt QoQ) and expenses ratio (-1.15 ppt YoY, -7.15 ppt QoQ).  Return on investment for 2Q19 rose 231 bps YoY and 244 bps QoQ.  Yield on investment was up 26 bps YoY and 264 bps QoQ.  Gain on investment was Bt9mn in 2Q19 vs. a loss of Bt1mn in 2Q18 and gain of Bt10mn in 1Q19. 

 

MBKET: Well larger than expected interim dividend 

MBKET announced an interim dividend of Bt0.68/share, equivalent to 8.1% yield.  This is well larger than our expectation of Bt0.07/share and 1H19 EPS of Bt0.07/share

LPN 2Q19 above concensus estimate but below SCBS 

Above consensus but below our forecast, LPN posted core profit of Bt169mn, -32% YoY and -52% QoQ, lowest quarterly profit since 2Q12. 

This bring 1H19 core profit to Bt519mn, -5% YoY, accounting for 34% of consensus and 32% of ours.

  • Revenue was only Bt1.7bn, -27% YoY and -40% QoQ, as no new condo completion.   Of the amount, 51% was condo and 48% low-rise.
  • Gross margin improved 310bps YoY from high-margin LPN Suite Petchburi-Makkasan from foreign sales which offset with higher SG&A for brokerage fee (S&A/revenue rose to 32.4% in 2Q19 vs 23.8% in 2Q18 and 28.4% in 1Q19).
  • It announced interim DPS of Bt0.2, yield of 2.8%. XD on Aug 20, 2019