IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>The regulator will not review <a href="https://www.smartkarma.com/entities/san-miguel-corporation" target="_blank" data-smartkarma-citation="entities:22728:1" rel="noopener">San Miguel (SMC PM)</a>’s SPA with <a href="https://www.smartkarma.com/entities/eagle-cement-corp" target="_blank" data-smartkarma-citation="entities:31217:1" rel="noopener">Eagle Cement Corp (EAGLE PM)</a>’s selling shareholders to acquire their combined 88.50% stake at PHP22.02 per share.</li>
<li>We expected approval as the PCC, the regulator, previously viewed San Miguel and ECC as part of the same group. The next step is the execution of a definitive agreement.</li>
<li>The approval paves the way for an MTO of the remaining 11.50% minority shares at PHP22.02, likely next month. At the last close, the spread to the offer is 6.1%.</li>
</ul>


The regulator will not review San Miguel (SMC PM)’s SPA with Eagle Cement Corp (EAGLE PM)’s selling shareholders to acquire their combined 88.50% stake at PHP22.02 per share.
We expected approval as the PCC, the regulator, previously viewed San Miguel and ECC as part of the same group. The next step is the execution of a definitive agreement.
The approval paves the way for an MTO of the remaining 11.50% minority shares at PHP22.02, likely next month. At the last close, the spread to the offer is 6.1%.


Eagle Cement: Regulatory Approval Paves the Way for San Miguel’s MTO at PHP22.02

<ul>
<li>
<a href="https://www.smartkarma.com/entities/eagle-cement-corp" target="_blank" data-smartkarma-citation="entities:31217:1" rel="noopener">Eagle Cement Corp (EAGLE PM)</a>/ECC’s selling shareholders (88.50% of the outstanding shares) have signed a SPA to sell their stake to <a href="https://www.smartkarma.com/entities/san-miguel-corporation" target="_blank" data-smartkarma-citation="entities:22728:1" rel="noopener">San Miguel (SMC PM)</a> at PHP22.02 per share.</li>
<li>Post-Completion of the SPA, San Miguel will be required to launch a mandatory tender offer to acquire the remaining 11.50% minority shares at PHP22.02 per share. </li>
<li>As the regulator previously viewed San Miguel and ECC as part of the same group, regulatory approval should be forthcoming. At the last close, the gross spread is 14.1%.</li>
</ul>



Eagle Cement Corp (EAGLE PM)/ECC’s selling shareholders (88.50% of the outstanding shares) have signed a SPA to sell their stake to San Miguel (SMC PM) at PHP22.02 per share.
Post-Completion of the SPA, San Miguel will be required to launch a mandatory tender offer to acquire the remaining 11.50% minority shares at PHP22.02 per share. 
As the regulator previously viewed San Miguel and ECC as part of the same group, regulatory approval should be forthcoming. At the last close, the gross spread is 14.1%.


Eagle Cement’s Potential MTO of PHP22.02 from San Miguel

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>We maintain our BUY rating but cut TP by 6% to Bt174  by roll-over target PE to 12.8xPE’23E,which is pegged to -1SD of its 10-yrs trailing mean.With challenging near-term outlook </li>
<li>2Q22 core profit grew both YoY and QoQ Excluding Bt353m loss from extra items, its 2Q22 core profit was at Bt1.7bn (+16%YoY,+13%QoQ).The YoY growth was driven by gross margin expansion</li>
<li>Neutral tone from the analyst’s meeting We foresee 3Q22 core profit to decline QoQ due to seasonal rout during the raining season but to grow YoY, as base effect kicks </li>
</ul>


We maintain our BUY rating but cut TP by 6% to Bt174  by roll-over target PE to 12.8xPE’23E,which is pegged to -1SD of its 10-yrs trailing mean.With challenging near-term outlook 
2Q22 core profit grew both YoY and QoQ Excluding Bt353m loss from extra items, its 2Q22 core profit was at Bt1.7bn (+16%YoY,+13%QoQ).The YoY growth was driven by gross margin expansion
Neutral tone from the analyst’s meeting We foresee 3Q22 core profit to decline QoQ due to seasonal rout during the raining season but to grow YoY, as base effect kicks 


SCCC : Equity Income Was Key Driver to 2Q22 Result

<ul>
<li>Maintain BUY rating with a new TP of B185.00 (down 9% from previous TP) derived from 13.2xPE’22E which is close to -1SD of 10-years trading average.</li>
<li>Excluding extraordinary items, 1Q22 core profit was at Bt1.5bn (+45%YoY, +20%QoQ), The YoY rose on solid revenue growth (+21%YoY), and equity income (+23%YoY).</li>
<li>We expect earnings trend to gear down QoQ in 2Q22, drag by mounting cost pressures behind the surging input costs upon the unfavorable macro dynamics and seasonality.</li>
</ul>


Maintain BUY rating with a new TP of B185.00 (down 9% from previous TP) derived from 13.2xPE’22E which is close to -1SD of 10-years trading average.
Excluding extraordinary items, 1Q22 core profit was at Bt1.5bn (+45%YoY, +20%QoQ), The YoY rose on solid revenue growth (+21%YoY), and equity income (+23%YoY).
We expect earnings trend to gear down QoQ in 2Q22, drag by mounting cost pressures behind the surging input costs upon the unfavorable macro dynamics and seasonality.


<ul>
<li>Reiterate BUY rating with TP of Bt202 based on 14.4xPE’22E,which is close to -1SD of its 10-years mean. Our rating factors in robust outlook on cement demand recovery, hence offering</li>
<li>Its 4Q21 net profit was at 1.1bn (+14%YoY, +57%QoQ), rebound fueled by strong revenue growth, together with margin expansion.</li>
<li>Foresee 1Q22 earnings to remain strong QoQ, backed by demand recovery post-lockdown and heighten cement prices in local and overseas market.</li>
</ul>


Reiterate BUY rating with TP of Bt202 based on 14.4xPE’22E,which is close to -1SD of its 10-years mean. Our rating factors in robust outlook on cement demand recovery, hence offering
Its 4Q21 net profit was at 1.1bn (+14%YoY, +57%QoQ), rebound fueled by strong revenue growth, together with margin expansion.
Foresee 1Q22 earnings to remain strong QoQ, backed by demand recovery post-lockdown and heighten cement prices in local and overseas market.


SCCC: Cement Sets to Swing into Recovery Mode in 2022

Thailand

Siam City Cement Public Company Limited produces and distributes cement under branded names with various type of cement for different applications.  The Company also also produces and distributes ready-mix concrete and aggregates under branded names, as well as branded wood-replacement products.

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Siam City Cement (SCCC TB)

Eagle Cement: Regulatory Approval Paves the Way for San Miguel’s MTO at PHP22.02

The approval paves the way for an MTO of the remaining 11.50% minority shares at PHP22.02, likely next month. At the last close, the spread to the...

Arun George

Eagle Cement’s Potential MTO of PHP22.02 from San Miguel

The regulator should approve as it previously considered San Miguel and ECC as part of the same group. Timing is the key risk. At the last close,...

Arun George

SCCC : Equity Income Was Key Driver to 2Q22 Result

We maintain our BUY rating but cut TP by 6% to Bt174 by roll-over target PE to 12.8xPE’23E, which is pegged to -1SD of its 10-yrs trailing mean....

Pi Securities PCL, Thailand

SCCC: Gradual Recovery Intact

Maintain BUY rating with a new TP of B185.00 (down 9% from previous TP) derived from 13.2xPE’22E which is close to -1SD of 10-years trading average.

Pi Securities PCL, Thailand

SCCC: Cement Sets to Swing into Recovery Mode in 2022

Reiterate BUY rating with TP of Bt202 based on 14.4xPE’22E, which is close to -1SD of its 10-years mean. Our rating factors in robust outlook on...

Pi Securities PCL, Thailand

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