Thai Equity - Bottom-up - Equities, Pi Securities PCL, Thailand

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Thai Equity - Bottom-up - Equities

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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

BR posted net profit in 1Q18 of Bt86m, (-8%YoY, -49%QoQ). 1Q18 earnings accounted for 15% of our 2018E full-year forecast. We maintain a BUY-rating with a target price of Bt8.90.<ul class="">
<li>Its 1Q18 revenue was Bt2.2bn, +4%YoY mainly from the Netherlands business, but -11% QoQ on seasonal effect.</li>
<li>Gross profit margin was 17.2%, higher than 16.9% in 1Q17 but lower than 18.3% in 4Q17, on the swing in revenue mix from the Netherlands business, which has high margin.</li>
<li>The main pressure, SG&amp;A expenses to sales…</li>
</ul>

BR posted net profit in 1Q18 of Bt86m, (-8%YoY, -49%QoQ). 1Q18 earnings accounted for 15% of our 2018E full-year forecast. We maintain a BUY-rating with a target price of Bt8.90.
Its 1Q18 revenue was Bt2.2bn, +4%YoY mainly from the Netherlands business, but -11% QoQ on seasonal effect.
Gross profit margin was 17.2%, higher than 16.9% in 1Q17 but lower than 18.3% in 4Q17, on the swing in revenue mix from the Netherlands business, which has high margin.
The main pressure, SG&amp;A expenses to sales…


BR: Disappointing 1Q18 but Long Term View Still Intact

We initiate coverage on BR with a BUY rating and a 2018E target price of Bt8.9, derived from a 14.8x PER, which is a -0.5 SD of its two-year trading average. The story:<ul><li>New value-added food line to be a source of domestic boost</li><li>The only way is up for overseas business</li><li>Big picture for duck consumption looks meaty</li><li>Expected earnings growth of 5% CAGR in 2018-20E</li></ul>Risks:   <ul><li>Changing trade measures</li><li>Fluctuations in raw material prices</li><li>Forex instabilities</li></ul>Background: Bangkok Ranch Public Company Limited (BR) was established as Bangkok Ranch Co., Ltd. on 16 July 1984 as a joint venture between Joseph and Rosanna Suchaovanich and KTC International Development Co., Ltd. Its business covers the production of all varieties of duck meat and duck-related products. The company exports products to more than 20 countries, with the main importing regions in Europe and Asia. It company has a total capacity of 18 million ducks per year in Thailand and 5.2 million ducks per year in Netherlands.

We initiate coverage on BR with a BUY rating and a 2018E target price of Bt8.9, derived from a 14.8x PER, which is a -0.5 SD of its two-year trading average. The story:New value-added food line to be a source of domestic boostThe only way is up for overseas businessBig picture for duck consumption looks meatyExpected earnings growth of 5% CAGR in 2018-20ERisks:   Changing trade measuresFluctuations in raw material pricesForex instabilitiesBackground: Bangkok Ranch Public Company Limited (BR) was established as Bangkok Ranch Co., Ltd. on 16 July 1984 as a joint venture between Joseph and Rosanna Suchaovanich and KTC International Development Co., Ltd. Its business covers the production of all varieties of duck meat and duck-related products. The company exports products to more than 20 countries, with the main importing regions in Europe and Asia. It company has a total capacity of 18 million ducks per year in Thailand and 5.2 million ducks per year in Netherlands.

BR: This Duck’s Tale Is About to Take Wing

Thailand

Bangkok Ranch PCL produces duck meat and related food products. The Company offers a range of raw, pre-cooked, and ready-to-eat whole, half, and roasted duck products.

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Bangkok Ranch PCL (BR TB)

BR: Disappointing 1Q18 but Long Term View Still Intact

BR posted net profit in 1Q18 of Bt86m, (-8%YoY, -49%QoQ). 1Q18 earnings accounted for 15% of our 2018E full-year forecast. We maintain a BUY-rating...

Pi Securities PCL, Thailand

BR: This Duck’s Tale Is About to Take Wing

We initiate coverage on BR with a BUY rating and a 2018E target price of Bt8.9, derived from a 14.8x PER, which is a -0.5 SD of its two-year...

Pi Securities PCL, Thailand

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