3QFY17 profit seen down 1% y‐y:

We forecast LPN to report a 1% y‐y drop in 3QFY17 profit to Bt307mn as a result of faltering revenue and sagging margins. In our forecast, we assume (i) 3QFY17 revenue will drop 4% y‐y to Bt2.1bn with much of the revenue coming from backlog as of 2QFY17 of around Bt2.4bn to be recognized as revenue in FY17, (ii) margins will narrow to 30% from 31% a year earlier due to a lack of revenue contribution from new high‐margin projects and price reductions in a bid to boost revenue, and (iii) marketing expenses will drift lower in the absence of new project launches.