Earnings beat consensus: Sectors that posted higher earnings than consensus estimates enjoyed a mix of higher core earnings and non-operational gains. These were seen in Food (higher profit margins), Banking (BAY and TCAP non-operational gains), ICT (TRUE and DIF asset revaluation), Petrochemicals (strong earnings growth at IVL), and Materials (higher profit margins for TOA). Nine sectors (out of a total of 17) beat consensus estimates, which is in the middle of the range of 6-13 sectors that have beaten the consensus in the past four years. Operating (core) profit for the quarter fell by 9% year-on-year, but increased 8% quarter-on-quarter, which was 2% above our expectations. Further downside could come from the impact of extra employee benefit expenses in the second quarter of 2019 (around 2% of estimated full-year aggregate net profit, partially included in 2019 earnings estimates) under the new labour law.

Source: Bangkok Post May 17, 2019 23:48 UTC