#Get the latest on stocks – Land and Housing Securities looked at SPALI stocks yesterday, announcing Q4/66 profit at 12,018 million baht, +69.4%QoQ, -8.8%YoY, 2.4% more than the department expected research.
With income from transfers of 10 billion baht, +41.3% QoQ, +3.9%YoY from a strong backlog, along with the opening of many new projects in Q4/23, including the use of marketing strategies to accelerate transfers, while GPM was -160bps QoQ , -260bps YoY of the share of transfers from horizontal projects, which have a lower GPM than condos, has increased significantly.
In terms of expenses, SG&A +12.3% QoQ from marketing to accelerate sales and handover. Meanwhile, profit sharing from JV projects in Australia increased at 49 million baht QoQ but decreased YoY, mainly from the impact of higher interest rates in Australia. As a result, purchasing power has weakened YoY, with profit for the full year 2023 at 5.89 billion baht -27% YoY, more than expected by the research team +2.3%.
The research department is optimistic about Q4/2023 operating results which have clearly recovered QoQ and brighter 2024 operating results trends.
This year’s strategies are considered to include proactively opening many new projects. And the majority of them will start selling in 1H24, along with 5 condo projects that will be completed and ready for handover this year, with a total value of 16 billion baht and an already backed backlog of around 50 billion baht, including additional investment. in Australia it is expected that it will support the profit share to double this year
This is expected to support profit growth of +11% YoY in 2024. SPALI announced a 2H23 dividend of 0.75 baht, calculated as a Divisional yield of 3.8% (full year 7.3%), up XD on 7 May 2024, considered a dividend stock ■ Outstanding and is a great choice of real estate stocks. This year’s research department recommends “Buy” with a target of 23.8 baht.
Philup Securities pointed out that in Q4/2023 SPALI shares had higher income growth yy and qq than expected, but high income in Australia caused GPM to be lowered Net profit was weak yy but still growing qq Profit for the whole year 2023 was weak It is quite large 2024 is expected to recover well from a low base. who have projects to hand over and have more investment income coming in
Q4/2023 profit was higher than expected. Revenue reached 10 billion baht, growing yy and qq more than expected by the division from the two real estate business transfers. in Thailand and income In Australia, access is high. The Australian business has a lower gross profit margin, resulting in a property GPM of 34.8%, which decreases yy and qq, causing gross profit to weaken yy but still grow qq has a net profit of 2,017.6 million baht – 7.1% yy +69.4 % qq profit for the full year 2023 at 5,989.4 million baht -26.7% yy another 2H24 dividend payment 0.75 baht
2024 is expected to have the most outstanding growth in the industry. Good growth from a low base, along with the launch of 42 projects worth more than 50 billion baht. Always high, contrary to the market where most projects have been launched fell this year. With a sales target of 36 billion baht +24.7% yy, there are 5 condo projects to be handed over this year with a total value of over 16 billion baht, more than last year when there were only 2 projects worth 3.8 billion baht, and there will also be investment in Australia more than doubled and will recognize revenue in Q2 / 67 onwards. Base price 23.70 baht, maintaining a “buy” recommendation.
Meanwhile, TISCO Securities has a positive outlook on Q4/66 results, SPALI shares clearly recovering QoQ and a brighter 2024 earnings forecast.
This year’s strategies are considered to include proactively opening many new projects. And the majority of them will start selling in 1H24, along with 5 condo projects that will be completed and ready for handover this year, with a total value of 16 billion baht and an already backed backlog of around 50 billion baht, including additional investment. It will encourage the profit share to double this year, expected to support 2024 profit growth of +11%YoY.SPALI
Announced dividend payment for 2H23 at 0.75 baht, calculated as Section yield 3.8% (year total 7.3%), up XD on 7 May 2024, considered outstanding dividend stock and top choice of real estate stocks. This year’s research department recommends “Buy”.
QoQ earnings improved from strong transfers. SPALI reported Q4/23 net profit of 2 billion baht -7.1% YoY but increased 69.4% QoQ and exceeded the research team’s estimate of 8.0% and exceeded the Bloomberg consensus of 5.9%, partly due to operating profit margin. better than expected. and increase from transfers The company reported paying a final dividend of 0.75 baht per share
various economic challenges leading to a low number of reservations. During 2023, the company faces challenges in the form of interest rate hikes. and loan-to-value (LTV) restrictions, these buying momentum slows and leads to higher discounts and cancellations. At the same time, rising raw material costs led to a decline in gross profit margins. Although performance was strong in some segments But full year sales still fell short of the target of 28.8 billion baht.
The forecast for 2024 suggests a moderate growth trend. The company targets orders and revenue in 2024 at 36 billion baht, with a guaranteed financial budget of 23.2 billion baht at an average interest rate of 2.78%, while the land purchase budget has increased to 8 billion baht Increase order sales Project launch in January 2024 and contribution from projects in Australia (starting in Q2) should help boost momentum SPALI expects 2024 revenue of Bt36 billion, driven by strong demand for low-end projects (70% of total revenue) and Australian market share It is expected that the launch value will increase to 50 billion baht, most of which will be in the first half of the year.
Maintain a “Buy” recommendation on SPALI with a fair value of 26.00 baht. by valuation Research maintains a “Buy” recommendation on SPALI based on its strong valuation and project plan. Especially during the first half of this year. The company plans to launch projects worth 50 billion baht this year. and is expected to gain a larger share of its Australian operations alongside.
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