CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Quantamental Investing to beat Benchmarks

A. Stotz Investment Research

We pick stocks. We construct portfolios. All our effort is focused on how to better pick stocks and construct portfolios. We serve fund management companies, family offices, and high net worth individuals.

Thematic (Sector/Industry)

<ul>
<li>We highlight 14 stocks in Thailand that look interesting to us based upon our FVMR Methodology</li>
<li>Portfolio changes: Three stocks remain, 11 new join the fray</li>
<li>Since inception, it has gained 95% versus the SET 100 Index’s return of 36%</li>
</ul>


We highlight 14 stocks in Thailand that look interesting to us based upon our FVMR Methodology
Portfolio changes: Three stocks remain, 11 new join the fray
Since inception, it has gained 95% versus the SET 100 Index’s return of 36%


The Stocks to Own in Thailand – Vol. 36

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>Downgrade to HOLD with a TP of Bt3.90,based on 15xPE’22E, which is close to -2SD of its 10-years trailing mean. In our view,the rating does not warrant a premium valuation</li>
<li>Its 4Q21 net profit figure was at Bt1.8bn, (+615%YoY, +16% QoQ), YoY growth is backed by margin expansion from Covid-related revenue and efficient cost control.</li>
<li>CHG’s 2021 net profit was at B4.2bn (+380YoY) thanks to solid revenue growth (+116%YoY) and wider margin (+18ppts), helped by Covid-related services.</li>
</ul>


Downgrade to HOLD with a TP of Bt3.90,based on 15xPE’22E, which is close to -2SD of its 10-years trailing mean. In our view,the rating does not warrant a premium valuation
Its 4Q21 net profit figure was at Bt1.8bn, (+615%YoY, +16% QoQ), YoY growth is backed by margin expansion from Covid-related revenue and efficient cost control.
CHG’s 2021 net profit was at B4.2bn (+380YoY) thanks to solid revenue growth (+116%YoY) and wider margin (+18ppts), helped by Covid-related services.


<ul>
<li>Upgrade to BUY with a TP of Bt3.9, based on 30xPE’22E,which is its pre-COVID bottom level.The 27% drop in share price from Jul 21 peak priced in concern over 3Q21</li>
<li>Expect 4Q21 earnings at Bt854m (+234%YoY,-45%QoQ), decline due to weak revenue growth, and narrow margin.</li>
<li>Foresee momentum in 1Q22 arising from the Omicron variant,given the amount of infection patients grew roughly to 7-13k cases per day.Along with vaccines rollout, which should be realize in 1Q22</li>
</ul>


Upgrade to BUY with a TP of Bt3.9, based on 30xPE’22E,which is its pre-COVID bottom level.The 27% drop in share price from Jul 21 peak priced in concern over 3Q21
Expect 4Q21 earnings at Bt854m (+234%YoY,-45%QoQ), decline due to weak revenue growth, and narrow margin.
Foresee momentum in 1Q22 arising from the Omicron variant,given the amount of infection patients grew roughly to 7-13k cases per day.Along with vaccines rollout, which should be realize in 1Q22


CHG: Pivot Focus to Organic Growth in 2022

Global Healthcare Analyst

Tina Banerjee

<ul>
<li>
<a href="https://www.smartkarma.com/entities/rajthanee-hospital" target="_blank" data-smartkarma-citation="entities:23729:1" rel="noopener">Rajthanee Hospital (RJH TB)</a> reported triple-digit revenue and net profit growth in Q3, with gross margin reaching all-time high to 57.4%, due to Covid-19-related tailwind.</li>
<li>With the steadily declining new Covid-19 cases in Thailand, Rajthanee’s Q4 revenue is expected to decline sequentially. However, non-Covid business should continue to recover with the resumption of elective procedures.</li>
<li>Despite the shares trading at a reasonable P/E of 17x, I see limited upside due to its small and geographically concentrated operations, with substantial revenue exposure to social security schemes.</li>
</ul>



Rajthanee Hospital (RJH TB) reported triple-digit revenue and net profit growth in Q3, with gross margin reaching all-time high to 57.4%, due to Covid-19-related tailwind.
With the steadily declining new Covid-19 cases in Thailand, Rajthanee’s Q4 revenue is expected to decline sequentially. However, non-Covid business should continue to recover with the resumption of elective procedures.
Despite the shares trading at a reasonable P/E of 17x, I see limited upside due to its small and geographically concentrated operations, with substantial revenue exposure to social security schemes.


Rajthanee Hospital (RJH TB): Q4 Revenue Growth to Decelerate Sequentially as Covid Tailwind Fades

<ul>
<li>Yesterdays’ analyst meeting came out with a neutral tone. We expect 4Q21 margins to decline, in-response to rollover from exceptionally high 3Q21 Covid related revenue, impact by falling new Covid</li>
<li>3Q21 net profit was at Bt1.6bn (+455%YoY, +171%QoQ), backed by solid top-line, and higher-than expected margin from Covid related services.</li>
<li>•We expect 4Q21 revenue to drop QoQ, caused by reduction in revenue from Covid related services, especially in OPD, IPD, NSHO segments. But, SSO unit should grow from additional </li>
</ul>


Yesterdays’ analyst meeting came out with a neutral tone. We expect 4Q21 margins to decline, in-response to rollover from exceptionally high 3Q21 Covid related revenue, impact by falling new Covid
3Q21 net profit was at Bt1.6bn (+455%YoY, +171%QoQ), backed by solid top-line, and higher-than expected margin from Covid related services.
•We expect 4Q21 revenue to drop QoQ, caused by reduction in revenue from Covid related services, especially in OPD, IPD, NSHO segments. But, SSO unit should grow from additional 


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)

The Stocks to Own in Thailand – Vol. 36

We highlight 14 stocks in Thailand that look interesting to us based upon our FVMR Methodology. Portfolio changes: Three stocks remain, 11 new join...

A. Stotz Investment Research

CHG: Gradually Back to Organic Growth

Downgrade to HOLD with a TP of Bt3.90, based on 15xPE’22E, which is close to -2SD of its 10-years trailing mean. In our view, the rating does not...

Pi Securities PCL, Thailand

CHG: Pivot Focus to Organic Growth in 2022

Upgrade to BUY with a TP of Bt3.9, based on 30xPE’22E, which is its pre-COVID bottom level. The 27% drop in share price from Jul 21 peak priced in...

Pi Securities PCL, Thailand

Rajthanee Hospital (RJH TB): Q4 Revenue Growth to Decelerate Sequentially as Covid Tailwind Fades

Q4 revenue is expected to slow down q/q as new Covid-19 cases in Thailand is declining steadily. However, non-covid business is recovering. The...

Tina Banerjee

CHG: Expect 4Q21 Earnings to Soften QoQ

Yesterdays’ analyst meeting came out with a neutral tone. We expect 4Q21 margins to decline, in-response to rollover from exceptionally high 3Q21...

Pi Securities PCL, Thailand

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