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>Maintain BUY recommendation for ILM and roll over target price to Bt24 (Previous TP: Bt21). ILM’s 3Q22 net profit came in at Bt153m (+173%YoY, -6%QoQ), in-line with our expectation</li>
<li>3Q22 earnings recovered YoY Its net profit came out at Bt153m (+173%YoY, -6%QoQ). The 9M22 result accounted for 74% of full-year net profit in 2022.</li>
<li>The YoY growth in earnings supported in earnings mainly supported by 1)SSSG at 21.4%,2)rental income surged to Bt171m (+77%YoY),an all-time-high,and 3)healthier gross profit margin at 44.8% from 43.8% in 3Q21</li>
</ul>


Maintain BUY recommendation for ILM and roll over target price to Bt24 (Previous TP: Bt21). ILM’s 3Q22 net profit came in at Bt153m (+173%YoY, -6%QoQ), in-line with our expectation
3Q22 earnings recovered YoY Its net profit came out at Bt153m (+173%YoY, -6%QoQ). The 9M22 result accounted for 74% of full-year net profit in 2022.
The YoY growth in earnings supported in earnings mainly supported by 1)SSSG at 21.4%,2)rental income surged to Bt171m (+77%YoY),an all-time-high,and 3)healthier gross profit margin at 44.8% from 43.8% in 3Q21


<ul>
<li>Maintain BUY recommendation for ILM with a target price of Bt21. ILM’s 2Q22 net profit was at Bt162m (+61%YoY,+1%QoQ),the highest level in the past eleven-quarters and better than our expectation.</li>
<li>Healthy margin boost 2Q22 earnings grew YoY ILM reported a net profit of Bt162m in 2Q22(+61%YoY,+1%QoQ),the highest level in the past eleven-quarters.The 1H22 result accounted for 55% of our 2022E.</li>
<li>The YoY and QoQ growth in 2Q22 earnings supported by healthy margin and SSSG of +3.4%YoY.</li>
</ul>


Maintain BUY recommendation for ILM with a target price of Bt21. ILM’s 2Q22 net profit was at Bt162m (+61%YoY,+1%QoQ),the highest level in the past eleven-quarters and better than our expectation.
Healthy margin boost 2Q22 earnings grew YoY ILM reported a net profit of Bt162m in 2Q22(+61%YoY,+1%QoQ),the highest level in the past eleven-quarters.The 1H22 result accounted for 55% of our 2022E.
The YoY and QoQ growth in 2Q22 earnings supported by healthy margin and SSSG of +3.4%YoY.


<ul>
<li>Yesterday analyst meeting came out with a positive tone.We maintain BUY rating with a target price of Bt21.0, derived from 18xPE’22E,+1SD from three years average trading range or 50% discount</li>
<li>We expect earnings to grow to Bt764m in 2024E or +19%CAGR (2022-24E) from -5%CAGR(2019-21), driven by 1) solid SSSG and online sales, 2) solid recovery in rental income</li>
<li>To implement a more aggressive strategy after COVID-19, the management aims to expand 1-2 new stores per year from 2023 onwards.</li>
</ul>


Yesterday analyst meeting came out with a positive tone.We maintain BUY rating with a target price of Bt21.0, derived from 18xPE’22E,+1SD from three years average trading range or 50% discount
We expect earnings to grow to Bt764m in 2024E or +19%CAGR (2022-24E) from -5%CAGR(2019-21), driven by 1) solid SSSG and online sales, 2) solid recovery in rental income
To implement a more aggressive strategy after COVID-19, the management aims to expand 1-2 new stores per year from 2023 onwards.


ILM: Positive Earnings Outlook in 2022-24

<ul>
<li>We maintain BUY rating with a target price of Bt21.0, derived from 18xPE’22E, +1SD from three years average trading range or 50% discount from Home improvement subsector.</li>
<li>We expect ILM to report 4Q21 net profit at Bt135m (-6%YoY, +142%QoQ). QoQ recovery will be supported by an increase in revenue, thanks to stores sales recovery (SSSG at +13%YoY)</li>
<li>We expect 2022E earnings to recover 46%YoY supported by revenue growth at +5.6%YoY to Bt8.5bn from; 1) a new products launch to attract new targeted  customers (low-ended and luxury segments)</li>
</ul>


We maintain BUY rating with a target price of Bt21.0, derived from 18xPE’22E, +1SD from three years average trading range or 50% discount from Home improvement subsector.
We expect ILM to report 4Q21 net profit at Bt135m (-6%YoY, +142%QoQ). QoQ recovery will be supported by an increase in revenue, thanks to stores sales recovery (SSSG at +13%YoY)
We expect 2022E earnings to recover 46%YoY supported by revenue growth at +5.6%YoY to Bt8.5bn from; 1) a new products launch to attract new targeted  customers (low-ended and luxury segments)


<ul>
<li>Yesterday analyst meeting came out with a positive tone. SSSG turned to positive at double digit growth in 4QTD. We upgrade recommendation to BUY from HOLD rating with higher TP:Bt21.0</li>
<li>The re-rating PE multiple reflects; 1) strong earnings momentum, 2) growing demand for furniture after The Bank of Thailand eased the loan-to-value (LTV)</li>
<li>We expect its 4Q21 earnings to hit the highest record in the past nine quarters supported by 1) an increase in revenue, thanks to stores sales recovery solid online sales</li>
</ul>


Yesterday analyst meeting came out with a positive tone. SSSG turned to positive at double digit growth in 4QTD. We upgrade recommendation to BUY from HOLD rating with higher TP:Bt21.0
The re-rating PE multiple reflects; 1) strong earnings momentum, 2) growing demand for furniture after The Bank of Thailand eased the loan-to-value (LTV)
We expect its 4Q21 earnings to hit the highest record in the past nine quarters supported by 1) an increase in revenue, thanks to stores sales recovery solid online sales


ILM: Positive Earnings Outlook and Attractive Valuation

Thailand

Index Living Mall Public Company Limited provides home furniture. The Company offers beds, mattresses, sofas, armchair, table, shelves, cabinets, drawer, kitchen utensils, and food preparation equipment, as well as electronic appliances. Index Living Mall serves customers in Thailand.

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Index Livingmall PCL (ILM TB)

ILM : 3Q22 Earnings Remained Solid YoY

Maintain BUY recommendation for ILM and roll over target price to Bt24 (Previous TP: Bt21). ILM’s 3Q22 net profit came in at Bt153m (+173%YoY, ...

Pi Securities PCL, Thailand

ILM : 2Q22 Earnings Hit 11-Quarters High

Maintain BUY recommendation for ILM with a target price of Bt21. ILM’s 2Q22 net profit was at Bt162m (+61%YoY, +1%QoQ), the highest level in the...

Pi Securities PCL, Thailand

ILM: Positive Earnings Outlook in 2022-24

Yesterday analyst meeting came out with a positive tone. We maintain BUY rating with a target price of Bt21.0, derived from 18xPE’22E, +1SD from...

Pi Securities PCL, Thailand

ILM: Expect 4Q21 Earnings Improve QoQ

We maintain BUY rating with a target price of Bt21.0, derived from 18xPE’22E, +1SD from three years average trading range or 50% discount from Home...

Pi Securities PCL, Thailand

ILM: Positive Earnings Outlook and Attractive Valuation

Yesterday analyst meeting came out with a positive tone. SSSG turned to positive at double digit growth in 4QTD. We upgrade recommendation to BUY...

Pi Securities PCL, Thailand

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