Thai Equity - Bottom-up - Equities, Pi Securities PCL, Thailand

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Thai Equity - Bottom-up - Equities

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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

Kerry Express Thailand / Equity Bottom-Up

<p><strong>We initiate coverage of KEX with a SELL rating, based on a target price of Bt43.0 derived from a DCF methodology (WACC 7.4%, terminal growth 3%) and implying 49.4xPE’21E, a 50% discount to the Thai transportation sector.</strong></p><p><strong>The story:</strong></p><div><strong>• Leading parcel delivery service provider in Thailand</strong></div><div></div><div><strong>• Big opportunity in domestic express parcel delivery market</strong></div><div></div><div><strong>• Competitors may take time to catch up</strong></div><div></div><div><strong>• Lack of short-term positive catalysts</strong></div><div></div><div><strong>• Earnings forecast to grow at 17%CAGR in 2021-23E</strong></div><p></p><p><strong>Risks:</strong></p><div><strong>• Highly competitive industry</strong></div><div></div><div><strong>• Economic recession</strong></div><div></div><div><strong>• Minimum wage increase</strong></div>

We initiate coverage of KEX with a SELL rating, based on a target price of Bt43.0 derived from a DCF methodology (WACC 7.4%, terminal growth 3%) and implying 49.4xPE’21E, a 50% discount to the Thai transportation sector.The story:• Leading parcel delivery service provider in Thailand• Big opportunity in domestic express parcel delivery market• Competitors may take time to catch up• Lack of short-term positive catalysts• Earnings forecast to grow at 17%CAGR in 2021-23ERisks:• Highly competitive industry• Economic recession• Minimum wage increase

KEX: Demanding Valuation with No Short-Term Catalyst

Thailand

WICE Logistics Public Company Limited provides freight shipping services. The Company offers marine freight shipping, air freight shipping and trucking services.

Triple i Logistics Public Company Limited provides logistics services. The Company offers sea and air freight forwarding, warehousing, distribution, shipping, goods transportation, and container depot services. Triple i Logistics serves customers worldwide.

NCL International Logistics Company Limited provides data management services logistics including, planning, management, and proposed solutions. The Company divides services between international transportation management services and domestic transportation services.

BTS Rail Mass Transit Growth Infrastructure Fund is a closed-end fund incorporated in Thailand. The Fund's objective is to achieve income. The Fund invests in the Core BTS Sky Train System from BTSC, which includes the Core Sukhumvit Line & the Core Silom Line.

BTS Rail Mass Transit Growth I (BTSGIF TB)

JWD Infologistics PCL is an information technology company. The Company focuses on maximizing the benefits of managing supply chains and fully integrated logistics solutions. JWD Infologistics operates in Southeast Asia

Namyong Terminal PCL is a roll on roll off terminal operator. The Company offers terminal services, car storage areas and warehousing services in Thailand.

Nok Airlines PCL operates as an airline carrier in the aviation industry. The Company provides air transportation services for passengers, baggage, and cargo.

Thai Airways International Public Company Limited is Thailand's national airline providing air transportation, freight and mail services on domestic and international routes including Asia, Europe, North America, Africa and South West Pacific.  The Company is a state enterprise which is controlled by the government and partly owned by the public.

Krungthai Car Rent and Lease Public Company Limited provides car rental services.

Bangkok Aviation Fuel Services Public Company Limited is provider of aviation fuel services including aviation depot and aircraft refueling services at the Bangkok International Airport (Donmuang) and the New Bangkok International Airport at Suvarnabhumi.

Guangdong Yueyun Transportation Co Ltd provides logistics and expressway-related services. The Company offers services including planning, procurement, and logistics management of construction materials, operates expressway service zones, and development of toll collection facilities.

Guangdong Yueyun Transportation (3399 HK)

Tasco Berhad provides logistics services. The Company offers supply, warehousing, and haulage services to airports and automobile manufacturers. The Company also provides land transportation services.

Chuo Warehouse Co., Ltd., based in Kyoto prefecture, is a warehouse operator specializing in storage of synthetic textiles.  The Company handles imported cargo and operates its business in the Tokai and Tokyo areas as well.

Snowman Logistics Limited provides integrated temperature controlled logistics services in India. The company offers warehousing solutions that cover ambient, chilled, frozen, and blast products.

LOGINET JAPAN Co., LTD. is a holding company established jointly by Sapporo Express and Chuo Express.  The Group operates freight trucking transportation services.  Loginet Japan also sells vehicles and office equipment and provides car repair services.

Taiwan Pelican Express Co., Ltd. offers courier delivery services.

Gati Corporation Limited supplies cargo distribution and logistics support services throughout India.   The Group has some 1,300 remote locations through 340 branches.

Tiger Logistics (India) Ltd. operates an international freight forwarding company. The Company offers freight forwarding, custom clearance agents, consulting and transportation services. Tiger Logistics serves large companies and multinational corporations in India and abroad.

KCTC provides inland transportation services, such as container and freight forwarding, bonded warehouses, and stevedoring services.  The Company also provides and manages logistics services.

CTI Logistics Limited provides courier services, freight forwarding, parcel, warehousing, logistic and customs broking services.  The Company also designs, produces and installs security systems in Western Australia along with plastic services such as manufacturing plumbing fittings.

Kerry Express Thailand is a parcel delivery provider in Thailand

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Kerry Express Thailand (KEX TB)

KEX: Demanding Valuation with No Short-Term Catalyst

We initiate coverage of KEX with a SELL rating, based on a target price of Bt43.0 derived from a DCF methodology (WACC 7.4%, terminal growth 3%)...

Pi Securities PCL, Thailand

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