Stock dimension – ERW by CNS indicates that the research department has a positive view. Normalized profit is expected in 4Q22F at 155 million baht (Vs. -366 and -12 million in 4Q21/3Q22). Quarterly earnings rebound, accounting for 88% of pre-COVID. -19 The RevPAR of hotels in all segments grew well, especially for hotels excluding Hop Inn, which grew the most prominently and was higher than the pre-COVID-19 period +16% from both Occ. Rate and ADR increase.
While %GPM is expected to improve yy, qq from ADR adjustments and economies of scale can offset rising wages and electricity costs. Looking at normalized profit in 2022F at -321 million baht, a loss less than expected.
While the 2023-24F net profit forecast has been revised up by 10% and 6% to 450 million baht and 666 million baht (+48% yy), reflecting the recovery in Thai tourism. and China that opened the country faster than expected
The research department has raised TP23F to 5.20 baht, maintaining Trading Buy recommendation from 4Q22F profit recovering the most in the group. and better than expected and the market expected Therefore, there is a chance that the market will revise up its projection, including expecting ERW to be the biggest beneficiary of tourism in Thailand recovering and China opening the country from the proportion of revenue from Thailand and Chinese tourists the most.
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