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

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<li>Demand from housing renovation after flood and high season factor will support 4Q22 performance. We expect the company to report 3Q22 net profit at Bt1.45bn (+67%YoY, -4%QoQ). The significant YoY </li>
<li>Expect 3Q22 earnings recover strongly YoY Revenue in 3Q22 is expected to report at Bt16bn (+19%YoY, -4%QoQ) supported by home improvement sales, which should grow to Bt1.55bn (+18%YoY)</li>
<li>Gross profit margin in 3Q22 should expand YoY and QoQ to27% backed by heathier margin from sales at 25.9%from efficiency inventory management and better products mix due to lower sales </li>
</ul>


Demand from housing renovation after flood and high season factor will support 4Q22 performance. We expect the company to report 3Q22 net profit at Bt1.45bn (+67%YoY, -4%QoQ). The significant YoY 
Expect 3Q22 earnings recover strongly YoY Revenue in 3Q22 is expected to report at Bt16bn (+19%YoY, -4%QoQ) supported by home improvement sales, which should grow to Bt1.55bn (+18%YoY)
Gross profit margin in 3Q22 should expand YoY and QoQ to27% backed by heathier margin from sales at 25.9%from efficiency inventory management and better products mix due to lower sales 


HMPRO : Expect Strong 3Q22 Earnings to Outpace Peer

ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN Insight Provider

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

<ul>
<li>
<a href="https://www.smartkarma.com/entities/berli-jucker-public-co-ltd" target="_blank" data-smartkarma-citation="entities:3685:1" rel="noopener">Berli Jucker (BJC TB)</a> 2Q2022 results saw continue momentum to sales from the recovery in Thailand and Vietnam with some impacy from higher raw material costs on margins.</li>
<li>It packaging supply chain saw a strong recovery from both glass bottling and aluminium cans with the latter seeing the biggest rebound. Retail under BigC also saw strong growth.</li>
<li>
<a href="https://www.smartkarma.com/entities/berli-jucker-public-co-ltd" target="_blank" data-smartkarma-citation="entities:3685:1" rel="noopener">Berli Jucker </a>remains a top proxy for the recovery in domestic consumption in both Thailand and Vietnam through its packaging plus for the retail recovery in Thailand through BigC.</li>
</ul>



Berli Jucker (BJC TB) 2Q2022 results saw continue momentum to sales from the recovery in Thailand and Vietnam with some impacy from higher raw material costs on margins.
It packaging supply chain saw a strong recovery from both glass bottling and aluminium cans with the latter seeing the biggest rebound. Retail under BigC also saw strong growth.

Berli Jucker remains a top proxy for the recovery in domestic consumption in both Thailand and Vietnam through its packaging plus for the retail recovery in Thailand through BigC.


Berli Jucker (BJC TB) - Well-Packaged Recovery Proxy

<ul>
<li>Maintain BUY recommendation for HMPRO with a target price of Bt17.Analyst meeting came with a slightly positive tone.We maintain our net profit growth projections of10% in 2022 and 7%in 2023. </li>
<li>2H22 outlook still intact HMPRO’s SSSG turned to positive at double digit growth in July 2022 from -1.1% in 2Q22, see on Pic3, page 3.</li>
<li>2H22, HMPRO plan to expand 6 stores (+5%YoY) comprise of one store for Homepro large store format and 5 stores for Mega home, see on Pic 1, Page2.</li>
</ul>


Maintain BUY recommendation for HMPRO with a target price of Bt17.Analyst meeting came with a slightly positive tone.We maintain our net profit growth projections of10% in 2022 and 7%in 2023. 
2H22 outlook still intact HMPRO’s SSSG turned to positive at double digit growth in July 2022 from -1.1% in 2Q22, see on Pic3, page 3.
2H22, HMPRO plan to expand 6 stores (+5%YoY) comprise of one store for Homepro large store format and 5 stores for Mega home, see on Pic 1, Page2.


<ul>
<li>Maintain BUY recommendation for HMPRO with a target price of Bt17.HMPRO’s 2Q22 net profit came in at Bt1.5bn(+6%YoY, +1%QoQ),in-line with our forecast and BB consensus estimated. The YoY and QoQ</li>
<li>2Q22 results in-line with our forecast HMPRO reported a net profit of Bt1.5bn in 2Q22 (+6%YoY, +1%QoQ). The 1H22 result accounted for 51% of our 2022E.</li>
<li>The YoY and QoQ growth in 2Q22 earnings supported by an increased in promotional activities with vendors in both at stores and online channels,higher rental income and new store expansion(BangnaKm.1)</li>
</ul>


Maintain BUY recommendation for HMPRO with a target price of Bt17.HMPRO’s 2Q22 net profit came in at Bt1.5bn(+6%YoY, +1%QoQ),in-line with our forecast and BB consensus estimated. The YoY and QoQ
2Q22 results in-line with our forecast HMPRO reported a net profit of Bt1.5bn in 2Q22 (+6%YoY, +1%QoQ). The 1H22 result accounted for 51% of our 2022E.
The YoY and QoQ growth in 2Q22 earnings supported by an increased in promotional activities with vendors in both at stores and online channels,higher rental income and new store expansion(BangnaKm.1)


HMPRO : 2Q22 Earnings to Grow YoY as Expected

<ul>
<li>Maintain BUY recommendation for HMPRO with a target price of Bt17. We expect the company to report 2Q22 net profit at Bt1.5bn(+5%YoY)and flat QoQ, stronger than peers. The YoY growth </li>
<li>Expect 2Q22 earnings grow YoY and flat QoQ We expect 2Q22 net profit to be at Bt1.5bn (+5%YoY, -0.5%QoQ) as a result of higher rental income and rental margin expansion.</li>
<li>We expect HMPRO to post 2Q22 revenue at Bt16.7bn (+2%YoY,+4%QoQ),driven by SSSG of +0.7% (mainly from HomePro Malaysia),new stores expansion in the past 12 months and rental income surge 45%YoY.</li>
</ul>


Maintain BUY recommendation for HMPRO with a target price of Bt17. We expect the company to report 2Q22 net profit at Bt1.5bn(+5%YoY)and flat QoQ, stronger than peers. The YoY growth 
Expect 2Q22 earnings grow YoY and flat QoQ We expect 2Q22 net profit to be at Bt1.5bn (+5%YoY, -0.5%QoQ) as a result of higher rental income and rental margin expansion.
We expect HMPRO to post 2Q22 revenue at Bt16.7bn (+2%YoY,+4%QoQ),driven by SSSG of +0.7% (mainly from HomePro Malaysia),new stores expansion in the past 12 months and rental income surge 45%YoY.


Thailand

Home Product Center Public Company Limited is a retailer of building materials and home improvement products.

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Home Product Center (HMPRO TB)

HMPRO : Expect Strong 3Q22 Earnings to Outpace Peer

Demand from housing renovation after flood and high season factor will support 4Q22 performance. We expect the company to report 3Q22 net profit at...

Pi Securities PCL, Thailand

Berli Jucker (BJC TB) - Well-Packaged Recovery Proxy

Berli Jucker remains a top proxy for the recovery in domestic consumption in both Thailand and Vietnam through its packaging plus for the retail...

Angus Mackintosh

HMPRO : Strong 3Q22 Performance Outlook

Maintain BUY recommendation for HMPRO with a target price of Bt17. Analyst meeting came with a slightly positive tone. We maintain our net profit...

Pi Securities PCL, Thailand

HMPRO : 2Q22 Earnings to Grow YoY as Expected

Maintain BUY recommendation for HMPRO with a target price of Bt17. HMPRO’s 2Q22 net profit came in at Bt1.5bn (+6%YoY, +1%QoQ), in-line with our...

Pi Securities PCL, Thailand

HMPRO : Expect 2Q22 Earnings to Grow YoY

Maintain BUY recommendation for HMPRO with a target price of Bt17. We expect the company to report 2Q22 net profit at Bt1.5bn (+5%YoY) and flat...

Pi Securities PCL, Thailand

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