DBSVS Expects AP’s 1Q21 Sales to Remain Solid, Upgrading TP to ฿9.10 with “BUY” Rating

DBS Vickers Securities (DBSVS) has given a “BUY” recommendation on AP (Thailand) Public Company Limited (AP) and revised a target price to ฿9.10/share based on forward-8x P/E despite forecasting earnings this year to drop by 15.5% YoY.

 

AP plans to launch 24 new projects in 2021 collectively worth 43 billion baht (-4% YoY), while targeting 35.5 billion baht presales (+12%), with 2 low-rise projects already launched in 1Q21. DBSVS expects AP’s sales to remain solid in 1Q21 to grow 30-40% YoY and 5-8% QoQ on a positive low-rise transfer, estimating a low-rise growth of 51% YoY.

 

While 1Q21 earnings are projected to increase YoY due to a higher transfer but would drop QoQ as share profit from joint ventures decreases. 

 

DBSVS reiterates a BUY rating and upgraded target price despite forecasting earnings this year to drop by 15.5% YoY because of strong transfer in 2020, however it could be revised later, meanwhile expecting earnings growth of 12.5% YoY in 2020.   

 

The current share price is traded at 7.3x 2021F P/E, lower than its peers 9-10x, and favorable 5% yield.