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

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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 for KKP with a new target price of Bt84.00.Given a better-than-expected result in 2Q22 and new financial guidance, we increased our net profit projections by 7-8% in 2022-24.</li>
<li>Analyst meeting We are opportunistic after attending the analyst meeting on 25 July. Management adjusted its 2022 financial guidance as follows: (i) loan growth of 16% YoY (from 12%) </li>
<li>KKP raised its hire purchase interest rate by around 25bp to mitigate the impact higher funding costs that were likely increase going forward.It maintained a loan spread of 5.1%in 2022</li>
</ul>


Maintain BUY for KKP with a new target price of Bt84.00.Given a better-than-expected result in 2Q22 and new financial guidance, we increased our net profit projections by 7-8% in 2022-24.
Analyst meeting We are opportunistic after attending the analyst meeting on 25 July. Management adjusted its 2022 financial guidance as follows: (i) loan growth of 16% YoY (from 12%) 
KKP raised its hire purchase interest rate by around 25bp to mitigate the impact higher funding costs that were likely increase going forward.It maintained a loan spread of 5.1%in 2022


<ul>
<li>Maintain BUY for KKP with a target price of Bt82.00.KKP’s net profit came in at Bt2.0bn in 2Q22, up 50% YoY (-1% QoQ). At this valuation, KKP’s good 2Q22 results </li>
<li>2Q22 results KKP reported a net profit of Bt2.0bn in 2Q22, up 50% YoY (-1% QoQ), which was 8% higher than our estimates on lower provisions. The strong YoY  </li>
<li>Lending growth in 2Q22 was strong at 2.8% QoQ (1Q22: +6.5% QoQ),largely due to higher demand from retail loans.Asset quality remained resilient.The NPL ratio slightly increased to 3.2% in 2Q22.</li>
</ul>


Maintain BUY for KKP with a target price of Bt82.00.KKP’s net profit came in at Bt2.0bn in 2Q22, up 50% YoY (-1% QoQ). At this valuation, KKP’s good 2Q22 results 
2Q22 results KKP reported a net profit of Bt2.0bn in 2Q22, up 50% YoY (-1% QoQ), which was 8% higher than our estimates on lower provisions. The strong YoY  
Lending growth in 2Q22 was strong at 2.8% QoQ (1Q22: +6.5% QoQ),largely due to higher demand from retail loans.Asset quality remained resilient.The NPL ratio slightly increased to 3.2% in 2Q22.


<ul>
<li>Maintain BUY for KKP with a target price of Bt82.00. We like its steady net profit growth, resilient fundamentals, and high dividend yield, expected at 5.3-6.6% for 2022-24.</li>
<li>Strong 2Q22 net profit to rise YoY : We expect Kiatnakin Phatra (KKP) to post a net profit of Bt1.9b in 2Q22, up 39% YoY (-9% QoQ). </li>
<li>Lending growth in 2Q22 will likely continue to be strong at 4.2% QoQ (1Q22: +6.5% QoQ), largely due to higher demand from vehicle hire purchase and mortgage lending. </li>
</ul>


Maintain BUY for KKP with a target price of Bt82.00. We like its steady net profit growth, resilient fundamentals, and high dividend yield, expected at 5.3-6.6% for 2022-24.
Strong 2Q22 net profit to rise YoY : We expect Kiatnakin Phatra (KKP) to post a net profit of Bt1.9b in 2Q22, up 39% YoY (-9% QoQ). 
Lending growth in 2Q22 will likely continue to be strong at 4.2% QoQ (1Q22: +6.5% QoQ), largely due to higher demand from vehicle hire purchase and mortgage lending. 


<ul>
<li>Maintain our BUY call with a higher target price of Bt82 (from Bt79). Our BUY call reflects steady earnings growth, a resilient balance sheet, and attractive dividend payment. </li>
<li>Management was optimistic about lending growth and loan quality due to the economic reopening.</li>
<li>Net profit in 1Q22 came in at Bt2.05bn (+41% YoY, +1% QoQ) and 15% higher than our expectation.</li>
</ul>


Maintain our BUY call with a higher target price of Bt82 (from Bt79). Our BUY call reflects steady earnings growth, a resilient balance sheet, and attractive dividend payment. 
Management was optimistic about lending growth and loan quality due to the economic reopening.
Net profit in 1Q22 came in at Bt2.05bn (+41% YoY, +1% QoQ) and 15% higher than our expectation.


<ul>
<li>We initiate coverage of KKP with a BUY rating and a target price of Bt79. Our valuation is derived from a Gordon growth model (ROE 13.5%, growth 2%),implying 1.2x PBV’22E</li>
<li>Steady growth ahead on continued lending growth and a potential reduction in credit costs</li>
<li>Resilient asset quality and high loan loss reserves against NPLs</li>
</ul>


We initiate coverage of KKP with a BUY rating and a target price of Bt79. Our valuation is derived from a Gordon growth model (ROE 13.5%, growth 2%),implying 1.2x PBV’22E
Steady growth ahead on continued lending growth and a potential reduction in credit costs
Resilient asset quality and high loan loss reserves against NPLs


Thailand

Kiatnakin Bank Public Company Limited provides commercial banking services including commercial, developmental, consumer, hire-purchase, and mortgage financing to its customers in Thailand. The Company also provides securities brokerage and investment advisory services.

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Kiatnakin Bank (KKP TB)

KKP : Solid Growth, High Dividends

Maintain BUY for KKP with a new target price of Bt84.00. Given a better-than-expected result in 2Q22 and new financial guidance, we increased our...

Pi Securities PCL, Thailand

KKP : Attractive Valuation and Dividend

Maintain BUY for KKP with a target price of Bt82.00. KKP’s net profit came in at Bt2.0bn in 2Q22, up 50% YoY (-1% QoQ). At this valuation, KKP’s...

Pi Securities PCL, Thailand

KKP : A Growth and Dividend Play

Maintain BUY for KKP with a target price of Bt82.00. We like its steady net profit growth, resilient fundamentals, and high dividend yield,...

Pi Securities PCL, Thailand

KKP: High Dividend and Growth Stock

ntain our BUY call with a higher target price of Bt82 (from Bt79). Our BUY call reflects steady earnings growth, a resilient balance sheet, and...

Pi Securities PCL, Thailand

KKP: Growth and Dividend Plays

We initiate coverage of KKP with a BUY rating and a target price of Bt79. Our valuation is derived from a Gordon growth model (ROE 13.5%, growth...

Pi Securities PCL, Thailand

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