The share price of The Erawan Group Public Company Limited (SET: ERW) plunged 4.22% to THB3.18 per share despite strong performance from its 2024 earnings as the broad market in Thailand experienced a 1.47% drop at the closing of the morning session.
The SET100 Index, an index that includes the top 100 highest market cap in the Thai stock market, also saw a 1.5% drop with only six stocks out of 100 remaining in the positive territory, including PTT, COM7 and AOT.
The Erawan Group delivered a robust Q4 2024 net profit of 378 million baht, marking a 77% year-on-year (y-y) and 203% quarter-on-quarter (q-q) increase. This result beat market expectations by approximately 10%, driven by stronger-than-expected revenue and margins, according to analysts.
Liberator Securities maintains a “BUY” rating on ERW with a target price of 5.00 baht, citing the company’s continued growth in 2025, supported by the ongoing recovery of Thailand’s tourism sector. They also highlight ERW’s attractive valuation, trading at just 16x P/E, making it an appealing investment for long-term accumulation.
Thanachart Securities also sees further upside for ERW’s earnings projections, maintaining its “BUY” call with a higher target price of 5.30 baht. The firm points to the company’s ability to outperform expectations and its recent dividend announcement of 0.09 baht per share, with an XD date on March 7 and payment scheduled for May 21.
With Thailand’s tourism sector rebounding and ERW demonstrating strong profitability, analysts remain bullish on the stock’s growth potential in 2025.
