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 for SCB with a new target price of Bt144.00.We like its steady net profit growth,resilient asset quality, undemanding valuation, and potential gain from interest rate hikes. For 3Q22</li>
<li>Strong 3Q22 earnings despite lackluster loan growth We expect SCB X (SCB) to post a net profit of Bt10.8b in 3Q22, up 23% YoY (+8%QoQ). Despite muted fee income impacted </li>
<li>Lending growth is likely to minimally decline by 0.5% QoQ as the bank prudently lends to customers to prevent new NPLs. Asset quality remains resilient, with the NPL ratio being</li>
</ul>


Maintain BUY for SCB with a new target price of Bt144.00.We like its steady net profit growth,resilient asset quality, undemanding valuation, and potential gain from interest rate hikes. For 3Q22
Strong 3Q22 earnings despite lackluster loan growth We expect SCB X (SCB) to post a net profit of Bt10.8b in 3Q22, up 23% YoY (+8%QoQ). Despite muted fee income impacted 
Lending growth is likely to minimally decline by 0.5% QoQ as the bank prudently lends to customers to prevent new NPLs. Asset quality remains resilient, with the NPL ratio being


<ul>
<li>Maintain BUY for SCB with a target price of Bt139.00. SCB’s 2Q22 net profit came in line with our expectation of Bt10bn (+14% YoY, -1% QoQ). Asset quality remained resilient </li>
<li>Analyst meeting We are neutral after attending the analyst meeting on 21 July. SCB adjusted some2022 financial guidance to reflect its 1H22 performance and potential effects on the economic environment.</li>
<li>Despite the volatility in the cryptocurrency market,SCB would continue to pursue its business expansion in digital asset businesses.  SCB mentioned that it had minimal cryptocurrency exposure of less than US$1m.</li>
</ul>


Maintain BUY for SCB with a target price of Bt139.00. SCB’s 2Q22 net profit came in line with our expectation of Bt10bn (+14% YoY, -1% QoQ). Asset quality remained resilient 
Analyst meeting We are neutral after attending the analyst meeting on 21 July. SCB adjusted some2022 financial guidance to reflect its 1H22 performance and potential effects on the economic environment.
Despite the volatility in the cryptocurrency market,SCB would continue to pursue its business expansion in digital asset businesses.  SCB mentioned that it had minimal cryptocurrency exposure of less than US$1m.


SCB : Recovery Amidst Rising Global Risks

<ul>
<li>Maintain BUY with a new target price of Bt139 (from Bt149) due to a net profit downgrade. Our valuation is derived from the Gordon Growth Model (ROE 9%, growth 2%)</li>
<li>Management had more cautious views on potential impacts from higher inflation and the Russia-Ukraine war.</li>
<li>Net profit in 1Q22 came in line with our expectations at Bt10.2bn (+1% YoY, +29% QoQ).</li>
</ul>


Maintain BUY with a new target price of Bt139 (from Bt149) due to a net profit downgrade. Our valuation is derived from the Gordon Growth Model (ROE 9%, growth 2%)
Management had more cautious views on potential impacts from higher inflation and the Russia-Ukraine war.
Net profit in 1Q22 came in line with our expectations at Bt10.2bn (+1% YoY, +29% QoQ).


SCB: Recovery Slowdown on a Rise in Economic Uncertainty

<ul>
<li>Maintain BUY with a target price of Bt149.Our BUY call reflects steady earnings growth,resilient asset quality, and compelling valuation. Our valuation is derived from the Gordon Growth Model (ROE 9.5%</li>
<li>Net profit will likely rise 2% YoY (+30% QoQ) in 1Q22 given higher net interest income from elevated loans and lower provisions.</li>
<li>The S&amp;P Global Rating downgrade will likely have minimal impacts on SCB’s fundamentals.</li>
</ul>


Maintain BUY with a target price of Bt149.Our BUY call reflects steady earnings growth,resilient asset quality, and compelling valuation. Our valuation is derived from the Gordon Growth Model (ROE 9.5%
Net profit will likely rise 2% YoY (+30% QoQ) in 1Q22 given higher net interest income from elevated loans and lower provisions.
The S&amp;P Global Rating downgrade will likely have minimal impacts on SCB’s fundamentals.


SCB: More Challenging Ahead from New Regulations

<ul>
<li>Maintain BUY with a target price at Bt149. Our BUY call reflects steady earnings growth, resilient asset quality, and leadership in digital banking services</li>
<li>Digital banking services remain a focus ahead. SCB expects moderate lending growth and credit costs to likely decline in 2022.</li>
<li>SCB X will offer newly-issued shares and make a tender offer for all of SCB’s shares in 1Q22.</li>
</ul>


Maintain BUY with a target price at Bt149. Our BUY call reflects steady earnings growth, resilient asset quality, and leadership in digital banking services
Digital banking services remain a focus ahead. SCB expects moderate lending growth and credit costs to likely decline in 2022.
SCB X will offer newly-issued shares and make a tender offer for all of SCB’s shares in 1Q22.


Thailand

SCB X Public Company Limited provides banking services. The Bank offers accounts, loans, cards, deposits, insurance, investment, payment, digital banking, and other related services. SCB X serves customers worldwide.

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Siam Commercial Bank (SCB TB)

SCB : Growth Intact Despite Uncertainty

Maintain BUY for SCB with a new target price of Bt144.00. We like its steady net profit growth, resilient asset quality, undemanding valuation, and...

Pi Securities PCL, Thailand

SCB : Recovery Amidst Rising Global Risks

Maintain BUY for SCB with a target price of Bt139.00. SCB’s 2Q22 net profit came in line with our expectation of Bt10bn (+14% YoY, -1% QoQ). Asset...

Pi Securities PCL, Thailand

SCB: Recovery Slowdown on a Rise in Economic Uncertainty

Maintain BUY with a new target price of Bt139 (from Bt149) due to a net profit downgrade. Our valuation is derived from the Gordon Growth Model...

Pi Securities PCL, Thailand

SCB: More Challenging Ahead from New Regulations

Maintain BUY with a target price of Bt149. Our BUY call reflects steady earnings growth, resilient asset quality, and compelling valuation. Our...

Pi Securities PCL, Thailand

SCB: Going More Digital Services

Maintain BUY with a target price at Bt149. Our BUY call reflects steady earnings growth, resilient asset quality, and leadership in digital banking...

Pi Securities PCL, Thailand

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