Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

<ul>
<li>Ngern Tid Lor (NTL), a financial service provider based in Thailand, raised around US$1bn in its Thailand IPO in May 2021.</li>
<li>NTL provides hire purchase loans for motorcycles and cars, along with new and used trucks. It also provides insurance brokerage services through its branches for non-life and life insurance. </li>
<li>The lock-up on its two main shareholders will expire today.</li>
</ul>


Ngern Tid Lor (NTL), a financial service provider based in Thailand, raised around US$1bn in its Thailand IPO in May 2021.
NTL provides hire purchase loans for motorcycles and cars, along with new and used trucks. It also provides insurance brokerage services through its branches for non-life and life insurance. 
The lock-up on its two main shareholders will expire today.


Ngern Tid Lor IPO Lock-Up - A US$660m Overhang. Selldown Is a Question of When, Not If.

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>Upgrade BUY with a target price of Bt15.00. Our upgrade reflects an attractive upside gain,resilient asset quality,and potential credit costs reduction. Our valuation is derived from the Gordon growth model</li>
<li>Net profit in 1Q22 came in at Bt8.8bn (+57% YoY, +78% QoQ) and 37% higher than our expectation on lower-than-expected provisions.</li>
<li>Asset quality improved. The NPL ratio decreased to 3.3% in 1Q22 and the loan loss coverage ratio was higher to 173.6% to withstand uncertainty ahead.</li>
</ul>


Upgrade BUY with a target price of Bt15.00. Our upgrade reflects an attractive upside gain,resilient asset quality,and potential credit costs reduction. Our valuation is derived from the Gordon growth model
Net profit in 1Q22 came in at Bt8.8bn (+57% YoY, +78% QoQ) and 37% higher than our expectation on lower-than-expected provisions.
Asset quality improved. The NPL ratio decreased to 3.3% in 1Q22 and the loan loss coverage ratio was higher to 173.6% to withstand uncertainty ahead.


KTB: Attractive Valuation and Potential Credit Cost Reduction

<ul>
<li>Maintain HOLD with a target price of Bt15.00. Our HOLD call reflects KTB’s slowing growth ahead and limited upside gain. Yet, a dividend yield of 4.5-4.8% for 2022-23 remains attractive.</li>
<li>Management guided loan growth to moderate to 3-4% YoY in 2022. Asset quality remains manageable.</li>
<li>Government expenditure will bolster Thailand’s economy in 2022. But growth potential may weaken than expected on potential impacts from higher energy prices and geopolitical uncertainties.</li>
</ul>


Maintain HOLD with a target price of Bt15.00. Our HOLD call reflects KTB’s slowing growth ahead and limited upside gain. Yet, a dividend yield of 4.5-4.8% for 2022-23 remains attractive.
Management guided loan growth to moderate to 3-4% YoY in 2022. Asset quality remains manageable.
Government expenditure will bolster Thailand’s economy in 2022. But growth potential may weaken than expected on potential impacts from higher energy prices and geopolitical uncertainties.


<ul>
<li>We initiate our coverage of KTB with a HOLD rating and a target price of Bt15.00.Our valuation is derived from the Gordon growth model(ROE 6.8%, growth 2%), implying 0.6x PBV’22E</li>
<li>Given the improving economic growth ahead, loans will continue to increase, but at a moderate rate</li>
<li>Potential credit cost reduction is likely given stable asset quality and high coverage ratio</li>
</ul>


We initiate our coverage of KTB with a HOLD rating and a target price of Bt15.00.Our valuation is derived from the Gordon growth model(ROE 6.8%, growth 2%), implying 0.6x PBV’22E
Given the improving economic growth ahead, loans will continue to increase, but at a moderate rate
Potential credit cost reduction is likely given stable asset quality and high coverage ratio


KTB: Despite Slowing Growth Ahead, Dividend Payment Is Attractive

Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

<ul>
<li>These five value oriented Thai banks all have healthy credit quality, NPL coverage and sound capital adequacy ratios; in addition, encouraging cost of risk trends support the outlook for earnings</li>
<li>Of these, we believe Kasikorn Bank screens well, with its attractive pre-provision and post-provision profitability versus peers, whilst trading on relatively undemanding multiples; we also highlight Bangkok Bank positively</li>
<li>Of the other Thai banks, we think that TMBThanchart could be a potential “turn around” stock, especially if management can improve credit quality, driving down its cost of risk further</li>
</ul>


These five value oriented Thai banks all have healthy credit quality, NPL coverage and sound capital adequacy ratios; in addition, encouraging cost of risk trends support the outlook for earnings
Of these, we believe Kasikorn Bank screens well, with its attractive pre-provision and post-provision profitability versus peers, whilst trading on relatively undemanding multiples; we also highlight Bangkok Bank positively
Of the other Thai banks, we think that TMBThanchart could be a potential “turn around” stock, especially if management can improve credit quality, driving down its cost of risk further


Top Five Thai Banks in Our Chart Screener; Kasikorn Bank (KBANK TB)  Is Top

Thailand

Krung Thai Bank Public Company Limited is a state-owned commercial bank offering various banking and financial services including commercial, consumer, credit card, and mortgage loans, as well as provident fund management, foreign exchange, and international trade financing services.  The Bank is majority owned by the Financial Institutions Development Fund.

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Krung Thai Bank Pub (KTB TB)

Ngern Tid Lor IPO Lock-Up - A US$660m Overhang. Selldown Is a Question of When, Not If.

Ngern Tid Lor (NTL), a financial service provider based in Thailand, raised around US$1bn in its Thailand IPO in May 2021. The lock-up on its two...

Sumeet Singh

KTB: Attractive Valuation and Potential Credit Cost Reduction

Upgrade BUY with a target price of Bt15.00.Our upgrade reflects an attractive upside gain, resilient asset quality,and potential credit costs...

Pi Securities PCL, Thailand

KTB: Growth Normalization Is Underway

Maintain HOLD with a target price of Bt15.00. Our HOLD call reflects KTB’s slowing growth ahead and limited upside gain. Yet, a dividend yield of...

Pi Securities PCL, Thailand

KTB: Despite Slowing Growth Ahead, Dividend Payment Is Attractive

We initiate our coverage of KTB with a HOLD rating and a target price of Bt15.00. Our valuation is derived from the Gordon growth model (ROE 6.8%,...

Pi Securities PCL, Thailand

Top Five Thai Banks in Our Chart Screener; Kasikorn Bank (KBANK TB) Is Top

Thai banks have healthy credit quality, NPL coverage & sound capital adequacy ratios, also positive cost of risk trends support the outlook for...

Victor Galliano

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