Stock dimensions – ERW Points to Open the Country Encouraging foreigners to flock to stay, pushing the budget for Q1/23 very strong!
ERW by “KGI Securities (Thailand)” revealed that the performance trend in Q1/23 will grow strongly. Due to the increase in foreign tourist arrivals, Jan.-Feb. 23 Occupancy (excluding budget hotels) was strong at 81% YTD (vs. 82% in Q4/22). 0666 keep growing
Chinese tourists surge
with a clearer sign of recovery from Chinese tourists During the normal period before the pandemic, ERW’s revenue from Chinese tourists accounted for 12-15% of total revenue. Currently, the share of revenue from Chinese tourists has recovered from 6% in Q4/2022 to 9% in May. July 2023. It is expected that this revenue proportion will continue to accelerate in the year 2023 after the country has been opened.
Invest 1.6 billion baht in the school
At the same time, the company plans to expand hotels continuously. In 2023, it plans to develop another 15 hotels from the previous year, opening 9 more hotels. ERW has set a double investment budget of 1.6 billion baht (from 800 million baht). Additional investment will support long-term revenue recognition. The D/E ratio is expected to remain under control at 1.6x by the end of 2023 (2.5x below the debt covenant).
Year 2013, turn over a notable profit of 560 million baht.
Knock ‘buy’ up the target 6.30 baht.
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