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

Delta Electronics Thailand  / Equity Bottom-Up

<p><strong>We initiate coverage of DELTA with a HOLD rating and a 2021E target price of Bt56.50, derived from 17.5x PE’21E, which is its 5-year trading average.</strong></p>
<p><strong>The story:</strong></p>
<div>•Global player in IT infrastructure and EV components</div>
<div>•Growing power supply and data center markets</div>
<div>•Beneficiary of automobile industry’s transition to electric vehicles</div>
<div>•Will recover from the impact of Covid-19 in 2H20</div>
<div>•Challenges from the lingering trade war and baht appreciation</div>
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<p><strong>Risks: </strong></p>
<div>•Foreign exchange rate fluctuation</div>
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<p><strong>Background:</strong></p>
<p>Delta Electronics (Thailand) Public Company Limited is a subsidiary of Delta Electronics, Inc. Delta Thailand is a manufacturer and exporter of power supplies and electronic equipment and parts. The company is one of the world›s leading producers of power supplies and electronic components, including cooling fans, EMI filters, and solenoids. At present, the company has 2 main plants in Thailand and two each in India (Rudrapur and Krishnagiri), Slovakia (Dubnica and Váhom and Liptovsky Hradok).</p>
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We initiate coverage of DELTA with a HOLD rating and a 2021E target price of Bt56.50, derived from 17.5x PE’21E, which is its 5-year trading average.
The story:
•Global player in IT infrastructure and EV components
•Growing power supply and data center markets
•Beneficiary of automobile industry’s transition to electric vehicles
•Will recover from the impact of Covid-19 in 2H20
•Challenges from the lingering trade war and baht appreciation

 

Risks: 
•Foreign exchange rate fluctuation


Background:
Delta Electronics (Thailand) Public Company Limited is a subsidiary of Delta Electronics, Inc. Delta Thailand is a manufacturer and exporter of power supplies and electronic equipment and parts. The company is one of the world›s leading producers of power supplies and electronic components, including cooling fans, EMI filters, and solenoids. At present, the company has 2 main plants in Thailand and two each in India (Rudrapur and Krishnagiri), Slovakia (Dubnica and Váhom and Liptovsky Hradok).


DELTA: Prime Beneficiary of Transition to Electric Vehicles

Thailand

Fabrinet offers outsourced process engineering and manufacturing services.  The Company contracts to manufacture optical communications, automotive, industrial, and imaging components, sub-assemblies, and modules for its original equipment manufacturer customers.

KCE Electronics Public Company Limited and its subsidiaries manufacture and export single-layered, multi-layered, and double-sided printed circuit boards (PCBs) under its KCE trademark.  Multi-layered PCBs are used mainly in high technology equipment and high precision instruments.  Double-sided PCBs are used largely in telecommunication and computing equipment.

Hana Microelectronics Public Company Limited is an electronics manufacturing service company.  The Company manufactures electronic components on behalf of its customers for shipment to them or their customers.

Cal-Comp Electronics (Thailand) PCL is an original equipment manufacturer of computer peripheral, office equipment and consumer electronic products. Its products include desktop computers, CD-ROMS, web pads, MP3 players, integrated receiver decoders, fax machines, mobile phones, cordless phones, pagers, and transceivers.  The Company is part of Kinpo Group of Taiwan.

SVI Public Company Limited provides printed circuit board contract manufacturing services.  Most of its customers are original equipment manufacturers of computer peripheral products, telecommunication equipment, and industrial equipment and instruments.

Jaymart PCL distributes mobile phones and accessories.  The Company, through its subsidiaries, provide retail management and debt collection services.

Synnex Thailand PCL distributes computer products.  The Company distributes computer components and peripherals, servers and storage devices, security products, computer software, and consumables.

Forth Corp PCL manufactures and sells telecommunications and electronic equipment. The Company also develop and install the data management system, manufactures, sells, and installs traffic light system and equipment, manufactures and sells electronic signs, as well as distributes electronic parts.

SiS Distribution (Thailand) Public Company Ltd. distributes computers and peripherals.  The Company distributes the products to resellers, retailers, system integrators, software houses, value added resellers, and original equipment manufacturers.

Samart Corporation Public Company Limited develops satellite communication systems, supplies various system types of television signals, and provides mobile multimedia content as well as enterprise network solution services. The Company also distributes telecommunication products, and provides mobile phone service and air traffic control service in Cambodia.

Samsung SDI Co., Ltd. specializes in developing Lithium Ion Battery (LIB) technology.  The Company also manufactures cathode ray tubes (CRTs) for televisions and computer monitors.  Samsung SDI also produces liquid crystal display (LCD) components and rechargeable batteries for cellular phones , personal digital assistants (PDAs), Energy Storage Systems and solar panels.

Kyocera Corporation manufacturers electronic equipment and components. The Company's products include telecommunication equipment, information equipment, optical equipment, ceramic products, semiconductor parts, chips, hybrid integrated circuits, thermal printheads, image sensors, liquid crystal displays, and connectors. Kyocera operates worldwide.

Keysight Technologies, Inc. offers electronic measurement services using wireless, modular, and software solutions.

CDW Corporation of Delaware provides information technology products and services. The Company offers hardware, software, computer peripherals, cloud computing, mobile devices, network communication, and security solutions. CDW serves business, government, education, and healthcare customers throughout North America.

NAURA Technology Group Co., Ltd. is an integrated high-tech company, which manufactures electronics equipments and components, including IC equipments, hybrid integrated circuits and combines with R&D, sales, and services.

SYNNEX Corporation provides information technology supply chain services.  The Company offers services to original equipment manufacturers and software publishers worldwide.  SYNNEX offers product distribution, related logistics services, and contract assembly.

Hangzhou Hikvision Digital Technology Co., Ltd develops, manufactures and sells video surveillance products.  The Company manufactures video and audio compression card, network hard disk video recorders, video servers, cameras, network storage, and other digital products.

Largan Precision Company Limited manufactures and markets optical lens modules and optoelectronic components. The Company offers lenses for liquid crystal display (LCD) projectors, scanners, optical mice, digital still cameras (DSCs), digital versatile discs (DVDs), light emitting diodes (LEDs), and photography mobile phones.

Coherent Corp. designs engineered materials and optoelectronic components. The Company offers products to industrial, optical communications, military, life sciences, semiconductor equipment, and consumer markets. Coherent also manufactures semiconductor lasers and optics for high power industrial lasers, optical communications systems, datacenter connectivity, and 3D sensing.

Universal Display Corporation is a member of the United States Display Consortium.  The consortium is a cooperative industry/government effort aimed at developing an infrastructure to support a North American flat panel display infrastructure.  The Company and its partners are developing high-resolution, full color, light weight Organic Light Emitting Diode (OLED) technology.

Delta Electronics (Thailand) PCL designs and manufactures electronic equipment. The Company produces power systems for telecommunications, medical equipment, and industrial automation.  Delta also produces fans, electromagnetic interference filters, and solenoids.

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Delta Electronics Thailand (DELTA TB)

DELTA: Prime Beneficiary of Transition to Electric Vehicles

We initiate coverage of DELTA with a HOLD rating and a 2021E target price of Bt56.50, derived from 17.5x PE’21E, which is its 5-year trading...

Pi Securities PCL, Thailand

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