Kasikorn Securities (KS) has noted that AP (Thailand) Public Company Limited (SET: AP) reported third-quarter 2025 net profit of THB 1.15 billion, matching both the securities firms’ and market consensus expectations of THB 1.14 billion. The result marked a 15% growth quarter-on-quarter (QoQ), though it was still down 20% year-on-year (YoY).
The QoQ profit increase was mainly driven by higher condominium joint venture (JV) transfers, which contributed to a 266% surge in profit share from JV condominium projects to THB 315 million. Additionally, the gross profit margin (GPM) improved by 1.3 percentage points to 31.4%, thanks to a better product mix from new project launches, even as revenue fell 8% to THB 9 billion.
The YoY drop in profit was attributed to the decline in revenue from reduced property handovers—down 8% YoY—and an 8% decrease in profit contributions from JV condominium developments. Intensified industry competition also compressed GPM by 0.8 percentage points, contributing to the YoY earnings contraction.
For the first nine months of 2025, AP’s net profit totaled THB 3.0 billion, a 19% YoY decrease, accounting for approximately 69% of the brokerage firm’s full-year forecast.
Kasikon reaffirms its “Buy” recommendation on AP, maintaining a target price of THB 9.00. AP’s shares are currently trading at an attractive 2025 PER of just 5.7x and offering a dividend yield of around 6.9%. The securities house expects AP’s improving performance in the fourth quarter and through 2026 to serve as key catalysts supporting the company’s share price.
