SHR: Expect Earnings Turn to Profit in Late 2022

SHR: 1Q22 Results Indicate Rapid Recovery in 2022

SHR: World Class Resorts at a Deeply Discounted Price

SHR: Stock Price Recovered to Pre-Covid Level

Thai Equity - Bottom-up - Equities, Pi Securities PCL, Thailand

Pi Research

Thai Equity - Bottom-up - Equities

Leading, full-service investment firm in Thailand

Pi Securities PCL, Thailand

Pi Securities is a well known securities company with 40 years experience in the industry, serving more than 60,000 clients. We offer one - stop service providing full range of financial products and services including extensive Brokerage, Proprietary Trading (Equities and Bonds), Advisory Services, Structured Products.

Moreover, our new research team tailored for institutional clients to focus on mid to small cap of Thai equities and trading strategies. Our services offered to our premium clients also include arrangement of company or site visits to with the managements of Thai listed companies.

Note: Effective on 1 March 2022, Country Group Securities PCL changed its name to Pi Securities

Equity Bottom-Up

S Hotels & Resorts PCL / Equity Bottom-Up

<p><strong>We maintain HOLD rating with 2021E target price at Bt3.10, derived from 0.74x PBV’21E, which was its valuation at 31-Dec-19, right before the Covid-19 outbreak.</strong></p><div>• SHR had 1Q21 recurring losses of Bt421m, fell from profit of Bt235m in 1Q20 and slightly worse than losses of Bt356m in 4Q20.</div><div></div><div>• Its performance could slowdown QoQ in 2Q21, given the lower occupancy rate in Maldives as the country banned travel from South Asia.</div><div></div><div>• The strong recovery could be seen in 3Q21, thanks to fast vaccine rollout in Western countries, particularly UK, where more than 60% of its keys operates.</div><div></div><div>• In the long term, SHR targeted to have 80 hotels in its portfolio, from 38 hotels currently.</div><div>
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</div><p><strong>We expect its earning to recover in 2H21, given an easing in Covid situation. However, we see minor downside risk to our 2021 projection as COGS in 1Q21 progressed faster than our expectation.</strong></p>

We maintain HOLD rating with 2021E target price at Bt3.10, derived from 0.74x PBV’21E, which was its valuation at 31-Dec-19, right before the Covid-19 outbreak.• SHR had 1Q21 recurring losses of Bt421m, fell from profit of Bt235m in 1Q20 and slightly worse than losses of Bt356m in 4Q20.• Its performance could slowdown QoQ in 2Q21, given the lower occupancy rate in Maldives as the country banned travel from South Asia.• The strong recovery could be seen in 3Q21, thanks to fast vaccine rollout in Western countries, particularly UK, where more than 60% of its keys operates.• In the long term, SHR targeted to have 80 hotels in its portfolio, from 38 hotels currently.
 
We expect its earning to recover in 2H21, given an easing in Covid situation. However, we see minor downside risk to our 2021 projection as COGS in 1Q21 progressed faster than our expectation.

SHR: 2분기에 난항을 겪다가 2H21에 강력하게 회복될 전망