ของฝากจาก PHATRA
Quality Houses: Solid growth story
Raising PO ; QH is a top pick
We are increasing our PO on QH to Bt5.65/share from Bt3.30, largely to reflect the higher value of its housing operations after raising our earnings estimates and P/E target. We reiterate our Buy rating on QH, which we see as a top pick in the sector due to its solid growth momentum and strengthened balance sheet.
Earnings upgrade
We have raised our 2014E-2015E by 22-29%, mainly to factor in a stronger revenue outlook as well as lower operating costs to sales to reflect efficiency gains. Note that our estimates are now 23% and 29% above Bloomberg consensus for 2013 and 2014, respectively.
Solid growth outlook with turnaround in housing operations
QH turned around its housing operations last year and this resulted in pre-ex earnings growth of over 120% from the successful penetration into the lower-middle and low-end segments. We expect growth momentum will continue at 63% this year and 17% next year, driven by stronger housing operations which are supported by a larger revenue base from more condominium transfers as well as the higher contributions of its low-end brand, Gusto. Note that we expect Gusto brand to contribute close to 15% this year from 3% last year.
Attractive valuations with stronger balance sheet
Despite the share price rally of over 120% year-to-date, QH is still trading at attractive valuations with housing P/E of 7x on 2013E and 6x on 2014E. QH's balance sheet is also healthier with expected net gearing of 1.1x at year-end 2014 compared with 1.6x at year-end 2011.
บ้านคุณภาพ
Quality Houses: Solid growth story
Raising PO ; QH is a top pick
We are increasing our PO on QH to Bt5.65/share from Bt3.30, largely to reflect the higher value of its housing operations after raising our earnings estimates and P/E target. We reiterate our Buy rating on QH, which we see as a top pick in the sector due to its solid growth momentum and strengthened balance sheet.
Earnings upgrade
We have raised our 2014E-2015E by 22-29%, mainly to factor in a stronger revenue outlook as well as lower operating costs to sales to reflect efficiency gains. Note that our estimates are now 23% and 29% above Bloomberg consensus for 2013 and 2014, respectively.
Solid growth outlook with turnaround in housing operations
QH turned around its housing operations last year and this resulted in pre-ex earnings growth of over 120% from the successful penetration into the lower-middle and low-end segments. We expect growth momentum will continue at 63% this year and 17% next year, driven by stronger housing operations which are supported by a larger revenue base from more condominium transfers as well as the higher contributions of its low-end brand, Gusto. Note that we expect Gusto brand to contribute close to 15% this year from 3% last year.
Attractive valuations with stronger balance sheet
Despite the share price rally of over 120% year-to-date, QH is still trading at attractive valuations with housing P/E of 7x on 2013E and 6x on 2014E. QH's balance sheet is also healthier with expected net gearing of 1.1x at year-end 2014 compared with 1.6x at year-end 2011.