- Undemanding valuation and good dividend, BUY
- 1Q22 earnings recovery
- New orders to boost sales growth
- Profit growth seen despite high costs
1Q22 earnings recovered QoQ to THB259m (+44% QoQ, -19% YoY). We expect new orders to help fuel 2022E sales growth of 6.5% YoY. While higher steel costs will initially squeeze gross profit margins, as it takes 3-6 months to hike prices, we expect only a dip in GPM. We forecast FY22 earnings to hit a new high of THB1.032b (+8% YoY). We think SAT’s valuations are undemanding at 7.6x 2022E P/E and 1x P/BV, with a healthy THB3.5b cash on hand. It offers a good dividend yield of 8.6%. Our THB25.50 TP is based on 10-yr average forward P/E of 10.3x. Maintain BUY.