CBG Falls 3% as 4Q20 Earnings Miss the Market Forecasts due to Lower Exports to CLMV

The share price of Carabao Group Public Company Limited (CBG) dropped ฿4.50/share or 3.25% to ฿134.00/share as of 10:21 local time in Thailand on Monday after the company’s earnings in 4Q missed the market expectation.

 

Last Friday, CBG reported a net profit of 3,525 million baht, increased 40% from a net profit of 2,506 million baht in 2019. The increase was mainly due to its higher revenue at 17,231 million baht, increased 15.4Y YoY.

Still, the net profit was slightly below analyst forecasts. Phillip Securities expected CBG to benefit from the business growth in CLMV, coupled with higher GPM and lower material cost, and estimated CBG’s 2020 profit at 3,768 million baht.

 

The net profit in 4Q20 at 874 million baht also missed KTB Securities’ forecasts by 18.50% from what had been expected at 1,073 million baht.

Krungsri Securities (KSS) estimated CBG’s yearly profit at 3,700 million baht, but downgraded recommendation from “BUY” to “Hold” with a target price of ฿145.00/share, stating that the current share price has already priced in positive factors. KSS also expected CBG to record a net profit of 1,030 million baht in 4Q20 as well.

In the statement, CBG stated that in 4Q20, the export sales to CLMV fell by 15.2% from the corresponding period last year and soften by 12.5% from 3Q20 mainly due to lower demands from Cambodia during the flood from the heavy rainfall nationwide in October 2020. Meanwhile, Myanmar sales order still made a record high in the quarter.

 

In addition, the Board of Directors of CBG has resolved the resolution to approve a dividend payment at ฿1.50/share on May 10, 2021. The ex-dividend date is March 5, 2021.