Reported net profit for 1Q22 at 16.1 million baht, shrinking 28.7%YoY and 26.8%QoQ: The company had revenue from sales and services of 290.0 million baht, growing 9.3%YoY and 9.1%QoQ from the gradual delivery of work. which is the total outstanding orders from year 64
Reported net profit for 1Q22 at 16.1 million baht, shrinking 28.7%YoY and 26.8%QoQ: The company had revenue from sales and services of 290.0 million baht, growing 9.3%YoY and 9.1%QoQ from the gradual delivery of work. which is the total outstanding orders from year 64
In addition to the situation of the epidemic of COVID-19 has continued to improve However, the company’s gross profit margin was 26.6%, down from 29.0% in 4Q21 and at 32.0% in 1Q21, mainly due to the depreciation of the baht. and the price of goods that increased according to inflation making the company as an importer of products to sell There is a decrease in gross profit margin. As a result, the company’s net profit for 1Q22 was 16.1 million baht, representing a net profit margin of 5.4%, down from 8.4% in 1Q21 and 8.1% in 4Q21. The financial position remains strong. The debt to equity ratio (D/E) was up slightly at 0.31x, low compared to the group’s average of 0.69x, and there’s plenty of liquidity to allow for more investments without the need for debt.
• Maintain FY22 net profit forecast at 85 million baht, growing 17%YoY: We forecast revenue. and FY22 net profit of Bt1,180 million and Bt85 million, growing 15% and 17% yoy. 1Q22 profit accounted for 19% of our FY22 earnings forecast, which we expect for the rest of the year. will see an increase in gross margin from an increase in the price of goods and services to compensate for the increased cost of goods and services, and at the end of Mar. ’22, there was a backlog of 404 million baht (a slight increase Compared to the December period at 397 million baht), which will gradually be recognized during the rest of the year. The supporting factor comes from the economic recovery. opening the country and measures to ease epidemic control causing the construction work in the country to return to bustling It is expected that the company will have sales growth in all product groups, namely (as shown in the picture of the revenue structure for the first quarter of 2019)
o Products for sale and installation of fire fighting equipment in office buildings Residential buildings and industrial plants (46% of total revenue)
o Air conditioning products (4% of total revenue) popular VRF The highlight is energy saving.
o Refrigeration system (19% of total revenue) HARN is a manufacturer of refrigeration kits for Fort Smart Service Public Company Limited (FORTH) for installation in an automatic coffee machine “Tao Bin ”
o Digital printing products business (28% of total revenue) using label sticker printing technology
o IoT system products (0.57% of total revenue) are used for installation in buildings to monitor the operation of the basic building system from a central location. such as tracking the energy consumption in the building malfunction notification Damage to the system through the display screen (Monitoring Dashboard)
• Maintain BUY recommendation, fair price of Bt2.66 for ’22 : Research remains positive on long-term fundamentals from diversified products. and is a necessary product in buildings and factories This is based on our 65-year earnings per share of Bt0.145 and a Prospective P/E of 18.34x (based on the company’s 5-year PER of +0.25SD). will see an increase in gross margin from an increase in the price of goods and services to compensate for the increased cost of goods and services The fair price has a 16.5% upsite from the current price, while the expected dividend yield is around 4.5% per annum. We maintain our BUY rating.
Risk Factors :
1. The economic recovery has been delayed causing the purchasing power to decrease.
2. Loss of being a distributor
3. The spread of the COVID-19 virus causing the business sector to slow down investment
4. The exchange rate fluctuates, affecting the cost of imported goods.
