Company Coverage
Asset World Corporation (AWC TB): Expect YOY Growth In Core Earnings In 2Q26 On Continuous Chinese Arrivals Recovery
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
Bt3.02
Bt3.70
+22.5%
Bt3.00
Analyst
Analyst
Nonpawit Vathanadachakul
Highlights
- We expect AWC to report core earnings of Bt202m (+11.0% yoy, -72.3% qoq) for 2Q26, supported by a continuous recovery of Chinese tourists.
- All hotel segments are showing strong yoy growth in RevPar, from the low base last year and as Chinese guests return.
- We remain optimistic about AWC’s growth prospects in 2H26, supported by several large events across Thailand. Maintain BUY with a target price of Bt3.70 (previously Bt3.00).
Analysis
- Expect strong core earnings growth in 2Q26. Asset World Corporation (AWC) is expected to report a core profit of Bt202m (+11.0% yoy, -72.3% qoq) for 2Q26. Core earnings in 2Q26 are expected to drop due to seasonality effect but still able to show yoy growth with the support from hotel segment revenue, which is projected to grow 6.3% yoy and the retail business' revenue, which could rise 13.8% yoy. The supporting factors for the hotel business are the overall RevPar increase of 3% yoy, driven by contributions from all hotel segments and the recovery of Chinese arrivals. If we exclude the new hotels, the overall RevPar could show a 6% yoy growth. AWC should see an increase of 30% yoy in revenue from Chinese guests. Meanwhile, the retail business revenue growth should be supported by the continuously strong performance of Jurassic World. Interest expense is likely to drop yoy and qoq due to cheaper cost of debt from refinancing. EBITDA margins should expand slightly yoy.
Highlights
- We expect AWC to report core earnings of Bt202m (+11.0% yoy, -72.3% qoq) for 2Q26, supported by a continuous recovery of Chinese tourists.
- All hotel segments are showing strong yoy growth in RevPar, from the low base last year and as Chinese guests return.
- We remain optimistic about AWC’s growth prospects in 2H26, supported by several large events across Thailand. Maintain BUY with a target price of Bt3.70 (previously Bt3.00).
Analysis
- Expect strong core earnings growth in 2Q26. Asset World Corporation (AWC) is expected to report a core profit of Bt202m (+11.0% yoy, -72.3% qoq) for 2Q26. Core earnings in 2Q26 are expected to drop due to seasonality effect but still able to show yoy growth with the support from hotel segment revenue, which is projected to grow 6.3% yoy and the retail business' revenue, which could rise 13.8% yoy. The supporting factors for the hotel business are the overall RevPar increase of 3% yoy, driven by contributions from all hotel segments and the recovery of Chinese arrivals. If we exclude the new hotels, the overall RevPar could show a 6% yoy growth. AWC should see an increase of 30% yoy in revenue from Chinese guests. Meanwhile, the retail business revenue growth should be supported by the continuously strong performance of Jurassic World. Interest expense is likely to drop yoy and qoq due to cheaper cost of debt from refinancing. EBITDA margins should expand slightly yoy.
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
Bt3.02
Bt3.70
+22.5%
Bt3.00
Analyst
Analyst
Nonpawit Vathanadachakul
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
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