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

EPG reports FY3Q19 net profit of Bt225m (+24%YoY,-14%QoQ). The FY9M19 result was in line with and accounts for 69% of our full-year forecast.
<ul>
<li>A YoY increase in earnings was mainly caused by sales contribution from automotive segment (+28%YoY). While a QoQ fall in earnings was due to a seasonal drop in sales of thermal insulators segment and narrow gross profit margins due to rising raw material costs.</li>
<li>We maintain our positive outlook toward its FY19-20E earnings driven by growth in every business units: 1) sales recovery from EPP segment (22% of total sales in FY9M19) from changing its product mix toward more on food packaging; 2) revenue contribution from Flexiglass after acquired it during FY1Q19, and, 3) consistent sales growth for Aeroflex (28% of total sales)</li>
</ul>
We maintain our BUY rating  with the target price of *Bt10.40 derived from its 2-years average trading range of 25xPE’19E.
*We make no changes to forecast, recommendation, and target price at the time of result announcement.

EPG reports FY3Q19 net profit of Bt225m (+24%YoY,-14%QoQ). The FY9M19 result was in line with and accounts for 69% of our full-year forecast.

A YoY increase in earnings was mainly caused by sales contribution from automotive segment (+28%YoY). While a QoQ fall in earnings was due to a seasonal drop in sales of thermal insulators segment and narrow gross profit margins due to rising raw material costs.
We maintain our positive outlook toward its FY19-20E earnings driven by growth in every business units: 1) sales recovery from EPP segment (22% of total sales in FY9M19) from changing its product mix toward more on food packaging; 2) revenue contribution from Flexiglass after acquired it during FY1Q19, and, 3) consistent sales growth for Aeroflex (28% of total sales)

We maintain our BUY rating  with the target price of *Bt10.40 derived from its 2-years average trading range of 25xPE’19E.
*We make no changes to forecast, recommendation, and target price at the time of result announcement.

EPG: Revenue from Auto Parts and EPP Buoyed Earnings to Grow YoY

We initiate coverage on EPG with a BUY rating, based on a target price of Bt10.40 and derived from 25.2xPE’19E, which is the relative PE ratio to materials sector in Thailand.
The story:
<ul>
<li>Well-diversified business units are its core strength</li>
<li>Moderate growth for Eastern Polypack’s revenue set to return</li>
<li>Aeroklas boasts a maintained solid outlook</li>
<li>Solid steady growth for Aeroflex still definitely on the cards</li>
</ul>
Risks: Fluctuation in foreign currency exchange and petrochemical-based raw material prices.

We initiate coverage on EPG with a BUY rating, based on a target price of Bt10.40 and derived from 25.2xPE’19E, which is the relative PE ratio to materials sector in Thailand.
The story:

Well-diversified business units are its core strength
Moderate growth for Eastern Polypack’s revenue set to return
Aeroklas boasts a maintained solid outlook
Solid steady growth for Aeroflex still definitely on the cards

Risks: Fluctuation in foreign currency exchange and petrochemical-based raw material prices.

EPG: Global-Standard Polymer Converter Assured of Sustainable Growth

Thailand

Eastern Polymer Group Public Company Limited operates in a range of industries. The Company, through its subsidiaries, manufactures rubber insulation and accessories for air-conditioning systems, automotive parts and accessories and disposable food packaging and plastic sheets.

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Eastern Polymer Group (EPG TB)

EPG: Revenue from Auto Parts and EPP Buoyed Earnings to Grow YoY

EPG reports FY3Q19 net profit of Bt225m (+24%YoY,-14%QoQ). The FY9M19 result was in line with and accounts for 69% of our full-year forecast. A...

Pi Securities PCL, Thailand

EPG: Global-Standard Polymer Converter Assured of Sustainable Growth

We initiate coverage on EPG with a BUY rating, based on a target price of Bt10.40 and derived from 25.2xPE’19E, which is the relative PE ratio to...

Pi Securities PCL, Thailand

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