Head of Research, Krungthai XSpring

Waraporn Wiboonkanarak

Head of Research

A full service Thai brokerage

Krungthai XSpring

Krungthai XSpring is a full service broker. The company provides a wide range of investment services such as Securities Brokerage, Derivative Agent Business, Securities Borrowing and Lending, Securities Trading, Underwriting, Financial Advisory, Wealth Advisory, Private Fund Management and International Markets Securities Trading. 

In terms of credibility, Fitch Ratings has assigned Krunghtai XSpring a long-term rating of AA- and a national short-term rating of F1+ with stable outlook.

Thematic (Sector/Industry)

<ul><li>Greater clarity after the general election should ease worries over a possible coup and a delay in the formation of a coalition government, which we expect to consist of three parties, i.e., the Pheu Thai Party, the Palang Pracharath Party and the Bhumjaithai Party, in our base-case scenario; this would reduce the risk premium of the SET Index, pushing it up to our target of 1,607 points.</li><li>Historical data from the five most recent elections shows that the SET increased by an average of +3.47% in the month after they were held; and in the week before and after the general elections took place, the index rose by 1.87% and 3.81%, respectively.</li><li>The biggest gainers were the finance, property development and ICT sectors. We thus recommend speculating on SIRI, SC, SCB, KBANK, CPALL, INTUCH, ADVANC and MINT.</li></ul>

Greater clarity after the general election should ease worries over a possible coup and a delay in the formation of a coalition government, which we expect to consist of three parties, i.e., the Pheu Thai Party, the Palang Pracharath Party and the Bhumjaithai Party, in our base-case scenario; this would reduce the risk premium of the SET Index, pushing it up to our target of 1,607 points.Historical data from the five most recent elections shows that the SET increased by an average of +3.47% in the month after they were held; and in the week before and after the general elections took place, the index rose by 1.87% and 3.81%, respectively.The biggest gainers were the finance, property development and ICT sectors. We thus recommend speculating on SIRI, SC, SCB, KBANK, CPALL, INTUCH, ADVANC and MINT.

Special Report: Election Rally (History to Repeat Itself)

Thai Equity - Bottom-up - Equities, Pi Securities PCL, Thailand

Pi Research

Thai Equity - Bottom-up - Equities

Leading, full-service investment firm in Thailand

Pi Securities PCL, Thailand

Pi Securities is a well known securities company with 40 years experience in the industry, serving more than 60,000 clients. We offer one - stop service providing full range of financial products and services including extensive Brokerage, Proprietary Trading (Equities and Bonds), Advisory Services, Structured Products.

Moreover, our new research team tailored for institutional clients to focus on mid to small cap of Thai equities and trading strategies. Our services offered to our premium clients also include arrangement of company or site visits to with the managements of Thai listed companies.

Note: Effective on 1 March 2022, Country Group Securities PCL changed its name to Pi Securities

Equity Bottom-Up

<ul>
<li>Maintain BUY recommendation with a target price of Bt72. Key growth driver for CPALL in 4Q22 and 2023 should be 1) an increase in number of customers in stores following</li>
<li>Expect robust performance in 4Q22-2023 Same-stores-sales growth (SSSG) for convenience stores (CVS) in Oct 2022 remained positive around 17%-19% YoY compared to 22.1% YoY in 3Q22 due to base effect.</li>
<li>Store expansion still on track:There are 13,660 convenience stores at the end of September 2022.The company open 526 stores in 9M22 or 75% of full-year target of 700 stores (+5%YoY).  </li>
</ul>


Maintain BUY recommendation with a target price of Bt72. Key growth driver for CPALL in 4Q22 and 2023 should be 1) an increase in number of customers in stores following
Expect robust performance in 4Q22-2023 Same-stores-sales growth (SSSG) for convenience stores (CVS) in Oct 2022 remained positive around 17%-19% YoY compared to 22.1% YoY in 3Q22 due to base effect.
Store expansion still on track:There are 13,660 convenience stores at the end of September 2022.The company open 526 stores in 9M22 or 75% of full-year target of 700 stores (+5%YoY).  


CPALL : Positive Catalyst from Tourism Recovery

<ul>
<li>Maintain BUY recommendation with a target price of Bt72.00. The company’s 3Q22 net profit came in at Bt3.68bn (+146%YoY, +22%QoQ), 12% above BB consensus estimated. The strong earnings mainly driven</li>
<li>Solid 3Q22 profit thanks to healthy non-food margin   Its core profit came out at Bt3.8bn (+159%YoY, +24%QoQ),the highest in the past three quarters. The 9M22 result accounted for 73% </li>
<li>The YoY and QoQ growth in earnings driven by 1) an increase in revenue from all business (convenience stores business, grocery wholesaling and retailing business) </li>
</ul>


Maintain BUY recommendation with a target price of Bt72.00. The company’s 3Q22 net profit came in at Bt3.68bn (+146%YoY, +22%QoQ), 12% above BB consensus estimated. The strong earnings mainly driven
Solid 3Q22 profit thanks to healthy non-food margin   Its core profit came out at Bt3.8bn (+159%YoY, +24%QoQ),the highest in the past three quarters. The 9M22 result accounted for 73% 
The YoY and QoQ growth in earnings driven by 1) an increase in revenue from all business (convenience stores business, grocery wholesaling and retailing business) 


CPALL : Impressive 3Q22 Earnings Driven by Healthy Margin

BJC’s 3Q20 net profit was at Bt1.1bn (-40%YoY, +247%QoQ). The 9M20 result accounted for 60% of 2020E earnings forecast.<ul>
<li>The fall in 3Q20 earnings was pressured by a drop in revenue to Bt35bn (-9%YoY,-3%QoQ). SSSG reported at -17.8% from -17% in 2Q20.</li>
<li>We maintain our positive outlook in 2021 earnings driven by (1) improvement of SSSG by 3%YoY in 2021E (2) recovery in rental income after easing lockdown as we expect occupancy rate to pick up to 95% in 2021 from a bottom at 85% in 2Q20 (3) cost saving from tax-deductible item in the next three year.</li>
<li>We still like this stock given (1) its strong integrated solid supply chain which allow the company to benefit from industry growth and recovery; (2) double digits growth for small format stores in the next two years (ie., Mini BigC and BigC Market which currently contribute 15% of total sales).</li>
</ul>We maintain BUY rating with a new target price of Bt43 (Previous TP of Bt55) based on 30xPE’21E, closed to Consumer Discretionary Sector. Target price cut was due to earnings downward revision by 22% in 2021E.

BJC’s 3Q20 net profit was at Bt1.1bn (-40%YoY, +247%QoQ). The 9M20 result accounted for 60% of 2020E earnings forecast.
The fall in 3Q20 earnings was pressured by a drop in revenue to Bt35bn (-9%YoY,-3%QoQ). SSSG reported at -17.8% from -17% in 2Q20.
We maintain our positive outlook in 2021 earnings driven by (1) improvement of SSSG by 3%YoY in 2021E (2) recovery in rental income after easing lockdown as we expect occupancy rate to pick up to 95% in 2021 from a bottom at 85% in 2Q20 (3) cost saving from tax-deductible item in the next three year.
We still like this stock given (1) its strong integrated solid supply chain which allow the company to benefit from industry growth and recovery; (2) double digits growth for small format stores in the next two years (ie., Mini BigC and BigC Market which currently contribute 15% of total sales).
We maintain BUY rating with a new target price of Bt43 (Previous TP of Bt55) based on 30xPE’21E, closed to Consumer Discretionary Sector. Target price cut was due to earnings downward revision by 22% in 2021E.

On the back of 42% earnings recovery in 2021, we maintain our BUY rating and roll over target price to Bt55 (up from previous TP of Bt43) based on 30xPE’21E, the Thai Commerce group.<ul>
<li>Benefit from government stimulus measures.</li>
<li>Expansion phase for Mini BigC still go on.</li>
</ul>We still like this stock for 12-months holding given (1) its strong integrated solid supply chain which allow the company to benefit from industry growth and recovery; (2) growth potential from small stores expansion by double digit growth in the next two years (ie., Mini BigC and BigC Market which currently contribute 15% of total sales).

On the back of 42% earnings recovery in 2021, we maintain our BUY rating and roll over target price to Bt55 (up from previous TP of Bt43) based on 30xPE’21E, the Thai Commerce group.
Benefit from government stimulus measures.
Expansion phase for Mini BigC still go on.
We still like this stock for 12-months holding given (1) its strong integrated solid supply chain which allow the company to benefit from industry growth and recovery; (2) growth potential from small stores expansion by double digit growth in the next two years (ie., Mini BigC and BigC Market which currently contribute 15% of total sales).

Thailand

CP ALL PCL operates convenience store chains in Thailand and China.  The Company also owns and operates the a department store chain located primarily in Shanghai city and Chonqing city of China.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

CP ALL PCL (CPALL TB)

Special Report: Election Rally (History to Repeat Itself)

The biggest gainers were the finance, property development and ICT sectors. We thus recommend speculating on SIRI, SC, SCB, KBANK, CPALL, INTUCH,...

Krungthai XSpring

CPALL : Positive Catalyst from Tourism Recovery

Maintain BUY recommendation with a target price of Bt72. Key growth driver for CPALL in 4Q22 and 2023 should be 1) an increase in number of...

Pi Securities PCL, Thailand

CPALL : Impressive 3Q22 Earnings Driven by Healthy Margin

Maintain BUY recommendation with a target price of Bt72.00. The company’s 3Q22 net profit came in at Bt3.68bn (+146%YoY, +22%QoQ), 12% above BB...

Pi Securities PCL, Thailand

BJC: Expect SSSG to Bottom Out in 4Q20

We maintain our positive outlook in 2021 earnings driven by improvement of SSSG by 3%YoY in 2021E , recovery in rental income and cost saving from...

Pi Securities PCL, Thailand

BJC: Expected Strong Recovery in 2021

On the back of 42% earnings recovery in 2021, we maintain our BUY rating and roll over target price to Bt55 (up from previous TP of Bt43) based on...

Pi Securities PCL, Thailand

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)