On Monday at 11:54 AM (Bangkok time), the share price of WHA Corporation Public Company Limited (SET: WHA) slumped by 5.00% or THB 0.30 to THB 5.70, with a trading value of THB 680.69 million.
KGI Securities pointed out that WHA disclosed a lackluster net profit of THB 459 million in the third quarter of 2024, marking a 26% decline year-over-year and a 64% drop quarter-over-quarter, falling short of analyst’s expectations of THB 831 million by approximately 45%. The underperformance was attributed to losses stemming from foreign exchange fluctuations and tax obligations.
The analyst anticipated a potential revision to WHA’s full-year forecast following a recent analyst meeting. Despite the disappointing results, KGI Securities maintains its ‘BUY’ rating for the company, with a base price of THB 6.60 per share.
In addition, Finansia Syrus Securities (FSS) highlighted that WHA’s normal profit for the quarter stood at THB 773 million, marking a 40% decrease from the previous quarter and a 24% increase year-over-year. This figure fell short of both the market consensus and FSS’s forecasts by approximately 8-18%.
The decline was primarily linked to challenges in the power plant sector, with other segments meeting expectations. Particularly, the Gheco-One power plant exhibited a weaker-than-expected performance, with a decrease in profits compared to the previous quarter due to reduced land transfers from a high base in the second quarter of 2024. Of the total land transfers, 46% belonged to the company, while the rest was held by joint ventures.
FSS anticipates a robust recovery in WHA’s performance in the fourth quarter of 2024, propelled by an anticipated transfer of 1,250 rai of land and the expected normalization of profits from the Gheco-One power plant, along with earnings from asset sales to WHAIR. The analyst stands by its optimistic outlook for WHA in 2024-2025, expecting record-high results, while continuing to recommend a ‘BUY’ rating for the company and setting a target price of THB 6.40 per share.
