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

We initiate coverage of GUNKUL with a BUY rating, based on a 2020E target price of Bt3.55, derived from a discounted cash flow valuation (WACC of 7.8% and TG of 1.0%). Our valuation implies 11.2xPE’20, or a 0.5 relative PE to the Thai Utilities sector.The story:<ul>
<li>Expect 13% EPS CAGR during 2020-22E</li>
<li>Secured stable earnings growth from a 60% capacity expansion in 2019-22E</li>
<li>Bt8bn EPC backlog to support revenue growth</li>
<li>Potential upside from expansion of power-generation business</li>
</ul>Risks:<ul>
<li>Delays in new projects</li>
<li>Exchange rate fluctuation</li>
<li>PPA termination</li>
</ul>

We initiate coverage of GUNKUL with a BUY rating, based on a 2020E target price of Bt3.55, derived from a discounted cash flow valuation (WACC of 7.8% and TG of 1.0%). Our valuation implies 11.2xPE’20, or a 0.5 relative PE to the Thai Utilities sector.The story:
Expect 13% EPS CAGR during 2020-22E
Secured stable earnings growth from a 60% capacity expansion in 2019-22E
Bt8bn EPC backlog to support revenue growth
Potential upside from expansion of power-generation business
Risks:
Delays in new projects
Exchange rate fluctuation
PPA termination


GUNKUL: Leading Fully Integrated Player in the Renewables Value Chain

Thailand

Gunkul Engineering PCL is a power generation and engineering company that supplies hardware and accessory products used in electrical power transmission and distribution systems.

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Gunkul Engineering (GUNKUL TB)

GUNKUL: Leading Fully Integrated Player in the Renewables Value Chain

We initiate coverage of GUNKUL with a BUY rating, based on a 2020E target price of Bt3.55, derived from a discounted cash flow valuation (WACC of...

Pi Securities PCL, Thailand

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