Krungsri Securities Public Company Limited maintains a buy recommendation on AP Thailand Public Company Limited with a 2026 target price of 10.10 baht, after the company reported second-quarter 2026 net profit of 1.06 billion baht, up 6% from the same period last year and up 18% from the previous quarter. The results were close to the research team's and market estimates. Profit growth was supported by higher revenue both year-on-year and quarter-on-quarter, as well as an improved gross margin to 30.9% from 30.7% a year earlier and 29.6% in the first quarter, thanks to a higher proportion of transfers of new high-margin projects. Ownership transfers in the second quarter of 2026 rose 8% from a year earlier and 13% from the previous quarter despite a high base, with growth in both low-rise projects and condominiums, in line with high presales during the same period. The rising share of new projects helped lift the gross margin. First-half 2026 net profit was 1.97 billion baht, up 5% from a year earlier, accounting for 43% of the full-year 2026 profit estimate of 4.5 billion baht. The research team maintains its estimate and expects full-year profit to grow 5% from a year earlier on higher ownership transfers. For the third quarter of 2026, the research team expects net profit to be stable year-on-year but higher quarter-on-quarter, supported by the start of transfers of new condominiums and additional launches of new low-rise projects, which will support revenue and profit in the second half of the year. Krungsri also expects AP to maintain a 2026 gross margin of around 31.0%, above the property sector average, reflecting better pricing competitiveness than peers. The firm also sees advantages from economies of scale given the company's large business size. Although construction costs remain a short-term pressure, the research team believes AP still has above-sector growth potential over the medium to long term from maintaining a high and steadily rising market share, and expects the company to remain the market leader. On valuation, Krungsri views the stock as not expensive, trading at a 2026 price-to-earnings ratio of only 5.7 times, making it still attractive for investment, and keeps AP as one of its top picks in the property sector.
AP (Thailand) Public Company LimitedKrungsri maintains buy rating with target price 10.10 baht after Q2 net profit beat estimates.
Bank of Ayudhya PCL