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

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

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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