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

Yesterday analyst meeting came out in a positive tone. Expect 2020E earnings to remain healthy backed by profit recognition from 633MWe project added in 2019.<ul>
<li>Expect 1Q20 earnings to grow both YoY and QoQ, given the profit recognition from 633MWe capacity expansion in 2019</li>
<li>Positive 2020-22E earnings outlook backed by full year operating results from 633 MW projects COD in 2019 and 412 MWe in pipeline, representing 28% growth from current level.</li>
<li>The share price fall 30% from January’s peak of Bt65.5 due to negative sentiments from drought impact and expected economic slowdown from COVID-19 spread. However, we see this have only a minimal impact to BGRIM, thus recommend hold due to limited upside to our target price.</li>
</ul>We maintain the HOLD rating based on a target price of Bt48 derived using DCF valuation (6.9% WACC and 1% TG). Our valuation implies 36.6x PE’20, which is equivalent to 1.2x PEG for 2020-22E, lower than its peers’ 1.6x PEG.

Yesterday analyst meeting came out in a positive tone. Expect 2020E earnings to remain healthy backed by profit recognition from 633MWe project added in 2019.
Expect 1Q20 earnings to grow both YoY and QoQ, given the profit recognition from 633MWe capacity expansion in 2019
Positive 2020-22E earnings outlook backed by full year operating results from 633 MW projects COD in 2019 and 412 MWe in pipeline, representing 28% growth from current level.
The share price fall 30% from January’s peak of Bt65.5 due to negative sentiments from drought impact and expected economic slowdown from COVID-19 spread. However, we see this have only a minimal impact to BGRIM, thus recommend hold due to limited upside to our target price.
We maintain the HOLD rating based on a target price of Bt48 derived using DCF valuation (6.9% WACC and 1% TG). Our valuation implies 36.6x PE’20, which is equivalent to 1.2x PEG for 2020-22E, lower than its peers’ 1.6x PEG.

BGRIM: Limited Impact from Drought and COVID-19 Outbreak

We initiate coverage of BGRIM with a BUY rating, based on a 2020E target price of Bt48, derived from discounted cash flow valuation (6.9% WACC and 1% TG). Our valuation implies 34.3xPE’20, which is equivalent to 0.82x PEG for 2019-21E, lower than its peers’ 1.6x PEG.The story:<ul>
<li>Expect 25% CAGR EPS growth during 2019-22E</li>
<li>Promising domestic and overseas outlooks</li>
<li>Secured earnings through SPP extension and replacement scheme</li>
<li>Poised to be a leader in solar power business in Vietnam</li>
</ul>Risks:<ul>
<li>Exchange rate fluctuation</li>
<li>Delay in construction period of committed projects</li>
<li>Fuel price fluctuation</li>
</ul>

We initiate coverage of BGRIM with a BUY rating, based on a 2020E target price of Bt48, derived from discounted cash flow valuation (6.9% WACC and 1% TG). Our valuation implies 34.3xPE’20, which is equivalent to 0.82x PEG for 2019-21E, lower than its peers’ 1.6x PEG.The story:
Expect 25% CAGR EPS growth during 2019-22E
Promising domestic and overseas outlooks
Secured earnings through SPP extension and replacement scheme
Poised to be a leader in solar power business in Vietnam
Risks:
Exchange rate fluctuation
Delay in construction period of committed projects
Fuel price fluctuation


BGRIM: Thai SPP Leader with Consistent Growth Prospects

Thailand

B.Grimm Power Public Company Limited operates as a renewable energy company. The Company focuses on the development, financing, construction, and operation of green field power plants. B.Grimm Power also renders electricity distribution, operations, and maintenance services. B.Grimm Power serves clients in Asia.

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B Grimm Power (BGRIM TB)

BGRIM: Limited Impact from Drought and COVID-19 Outbreak

Yesterday analyst meeting came out in a positive tone. Expect 2020E earnings to remain healthy backed by profit recognition from 633MWe project...

Pi Securities PCL, Thailand

BGRIM: Thai SPP Leader with Consistent Growth Prospects

We initiate coverage of BGRIM with a BUY rating, based on a 2020E target price of Bt48, derived from discounted cash flow valuation (6.9% WACC and...

Pi Securities PCL, Thailand

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