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

<ul>
<li>We reiterate our HOLD rating with a new target price of Bt3.50 (down 5% from the prior TP), reflecting earnings downgrade. We stay neutral based on the following</li>
<li>4Q22 outlook and beyond CHG's 4Q22 earnings are expected to decline YoY off last year's high base, and QoQ from a sharp drop in pandemic-related contributions.</li>
<li>Organic growth will rise due to a pent-up demand despite COVID receding with lower number of infection cases.As a result,the management expects double-digit revenue growth for A-class units from 4Q22 </li>
</ul>


We reiterate our HOLD rating with a new target price of Bt3.50 (down 5% from the prior TP), reflecting earnings downgrade. We stay neutral based on the following
4Q22 outlook and beyond CHG's 4Q22 earnings are expected to decline YoY off last year's high base, and QoQ from a sharp drop in pandemic-related contributions.
Organic growth will rise due to a pent-up demand despite COVID receding with lower number of infection cases.As a result,the management expects double-digit revenue growth for A-class units from 4Q22 


CHG : As COVID Recedes, Core Operation Continues Improving

<ul>
<li>We maintain our HOLD rating with a target price of Bt3.70. Despite heading into 4Q22 with a fewer number of infected cases will continue to pressure margins, we remain neutral </li>
<li>Weak across all verticals in 3Q22 CHG posted 3Q22 earnings of Bt258m (-84% YoY, -71% QoQ). The result was 48% and 46% below our estimate and the market consensus, respectively.</li>
<li>Gross margin declined to 26.9% (-24ppts YoY, -19ppts QoQ), weaker than our forecast of 35%, The disappointing margin was attribute to a sharp fall in pandemic related contribution.</li>
</ul>


We maintain our HOLD rating with a target price of Bt3.70. Despite heading into 4Q22 with a fewer number of infected cases will continue to pressure margins, we remain neutral 
Weak across all verticals in 3Q22 CHG posted 3Q22 earnings of Bt258m (-84% YoY, -71% QoQ). The result was 48% and 46% below our estimate and the market consensus, respectively.
Gross margin declined to 26.9% (-24ppts YoY, -19ppts QoQ), weaker than our forecast of 35%, The disappointing margin was attribute to a sharp fall in pandemic related contribution.


<ul>
<li>We maintain our HOLD rating with a target price of Bt3.70,based on 26.7xPE’23E, the lowest level of pre-COVID level.We expect CHG to report a 3Q22 net profit at Bt498m (-68%YoY,-43%YoY).</li>
<li>Weak across all verticals in 3Q22 We forecast 3Q22E earnings at Bt498m, continuing to witness a sharp fall of 68%YoY and 43%QoQ.The 9M22 will account for 88% of our 2022E</li>
<li>We expect CHG’s revenue to book atBt2.3bn(-48%YoY,-18%QoQ).The YoY trend is anticipated to nosedive off a high base effect in 3Q21when the company gained from an uptick in new infection patients. </li>
</ul>


We maintain our HOLD rating with a target price of Bt3.70,based on 26.7xPE’23E, the lowest level of pre-COVID level.We expect CHG to report a 3Q22 net profit at Bt498m (-68%YoY,-43%YoY).
Weak across all verticals in 3Q22 We forecast 3Q22E earnings at Bt498m, continuing to witness a sharp fall of 68%YoY and 43%QoQ.The 9M22 will account for 88% of our 2022E
We expect CHG’s revenue to book atBt2.3bn(-48%YoY,-18%QoQ).The YoY trend is anticipated to nosedive off a high base effect in 3Q21when the company gained from an uptick in new infection patients. 


<ul>
<li>We maintain our HOLD rating with a new TP of Bt3.70, down 5% from prior TP after roll over to 26.7xPE’23E (derived from its pre-pandemic levels).Despite, 2H22 earnings are expect</li>
<li>2H22 earnings to drop but still above pre-COVID We expect earnings trend continuing in downward trend in 2H22with revenue to drop HoH on the back of lower demand for COVID-19services</li>
<li>New projects in 2H22 and beyond   The company also plans to open two new hospitals (Shewarate and Chularat) in 2H22-1Q23 with a combined 150 beds or 19%of total bed </li>
</ul>


We maintain our HOLD rating with a new TP of Bt3.70, down 5% from prior TP after roll over to 26.7xPE’23E (derived from its pre-pandemic levels).Despite, 2H22 earnings are expect
2H22 earnings to drop but still above pre-COVID We expect earnings trend continuing in downward trend in 2H22with revenue to drop HoH on the back of lower demand for COVID-19services
New projects in 2H22 and beyond   The company also plans to open two new hospitals (Shewarate and Chularat) in 2H22-1Q23 with a combined 150 beds or 19%of total bed 


<ul>
<li>We keep our HOLD rating with a TP of Bt3.90, based on an unchanged 15xPE’22E. Although, 2022E earnings are expected to continue normalizing in 2H22</li>
<li>2Q22 earnings grew YoY but fell QoQ CHG’s 2Q22 earnings was at Bt878m, rose 52%YoY but declined 35%QoQ, which was 11% and 6% above our and market expectation, respectively.</li>
<li>Earnings trend to normalize in 2H22 We believe 2H22 earnings momentum will drop both YoY and HoH, given pandemic-related contribution fades off in the latter half of the year</li>
</ul>


We keep our HOLD rating with a TP of Bt3.90, based on an unchanged 15xPE’22E. Although, 2022E earnings are expected to continue normalizing in 2H22
2Q22 earnings grew YoY but fell QoQ CHG’s 2Q22 earnings was at Bt878m, rose 52%YoY but declined 35%QoQ, which was 11% and 6% above our and market expectation, respectively.
Earnings trend to normalize in 2H22 We believe 2H22 earnings momentum will drop both YoY and HoH, given pandemic-related contribution fades off in the latter half of the year


CHG : 2Q22 Earnings Grew YoY but Fell QoQ

Thailand

Chularat Hospital PCL owns medical centers and hospitals. The Company operates a variety of centers specializing in treatments such as hand surgery, open heart surgery, and strokes as well as providing emergency services and patient care. Chularat Hospital serves the medial industry throughout Thailand.

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Chularat Hospital (CHG TB)

CHG : As COVID Recedes, Core Operation Continues Improving

We reiterate our HOLD rating with a new target price of Bt3.50 (down 5% from the prior TP), reflecting earnings downgrade. We stay neutral based on...

Pi Securities PCL, Thailand

CHG : Weak 3Q22 Results

We maintain our HOLD rating with a target price of Bt3.70. Despite heading into 4Q22 with a fewer number of infected cases will continue to...

Pi Securities PCL, Thailand

CHG : A Long Sail Before Growth Resumes

We maintain our HOLD rating with a target price of Bt3.70, based on 26.7xPE’23E, the lowest level of pre-COVID level. We expect CHG to report a...

Pi Securities PCL, Thailand

CHG : 2H22 Earnings Trend to Slow Down

We maintain our HOLD rating with a new TP of Bt3.70, down 5% from prior TP after roll over to 26.7xPE’23E (derived from its pre-pandemic levels)....

Pi Securities PCL, Thailand

CHG : 2Q22 Earnings Grew YoY but Fell QoQ

We keep our HOLD rating with a TP of Bt3.90, based on an unchanged 15xPE’22E. Although, 2022E earnings are expected to continue normalizing in 2H22...

Pi Securities PCL, Thailand

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