Research from Asian Century Stocks, Asian Century Stocks

Michael Fritzell

Research from Asian Century Stocks

Providing financial journalism in the Asia-Pacific

Asian Century Stocks

Asian Century Stocks is a newsletter providing financial journalism for companies and stocks in the Asia-Pacific. 
The Asian Century Stocks logotype “百” stands for “one hundred” or a “century”. The economic centre of gravity is moving towards Asia. Yet most global investors are missing out.

Equity Bottom-Up

<ul>
<li>The cinema industry has been suffering from COVID-19 restrictions, in particular social distancing measures that have kept cinema operating rates low.</li>
<li>Now that the release pipeline looks strong again, cinemas will be on a path to recovery. I doubt that the global box office will reach the 2019 level this year, but it will get closer to that number.</li>
<li>Cinema operators worth mentioning include North America’s Cinemark, Cineplex and Marcus Corporation, China’s IMAX China and Thailand’s Major Cineplex.</li>
</ul>


The cinema industry has been suffering from COVID-19 restrictions, in particular social distancing measures that have kept cinema operating rates low.
Now that the release pipeline looks strong again, cinemas will be on a path to recovery. I doubt that the global box office will reach the 2019 level this year, but it will get closer to that number.
Cinema operators worth mentioning include North America’s Cinemark, Cineplex and Marcus Corporation, China’s IMAX China and Thailand’s Major Cineplex.


CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Quantamental Investing to beat Benchmarks

A. Stotz Investment Research

We pick stocks. We construct portfolios. All our effort is focused on how to better pick stocks and construct portfolios. We serve fund management companies, family offices, and high net worth individuals.

<ul>
<li>We highlight 14 stocks in Thailand that look interesting to us based on our FVMR Methodology</li>
<li>Portfolio changes: Nine stocks remain, and five new join the fray</li>
<li>Since inception, it has gained 105% versus the SET 100 Index’s return of 38%</li>
</ul>


We highlight 14 stocks in Thailand that look interesting to us based on our FVMR Methodology
Portfolio changes: Nine stocks remain, and five new join the fray
Since inception, it has gained 105% versus the SET 100 Index’s return of 38%


The Stocks to Own in Thailand – Vol. 39

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

<ul>
<li>Maintain BUY rating for MAJOR with a target price of Bt21.40. The company report 3Q22 net profit at Bt21m in 3Q22,(-99%YoY,-84%QoQ), The result came out below market and our expectation. </li>
<li>3Q22 core earnings fell 42%QoQ The company report 3Q22 net profit at Bt21m. (-99%YoY -84%QoQ) Stripping out extra items </li>
<li>Revenue hit 11-quarter high at Bt1.7bn (+5%QoQ +951%YoY) QoQ increase supported by high-margin advertising segment, bowling and concession revenue. YoY surge in revenue will be supported by an increase </li>
</ul>


Maintain BUY rating for MAJOR with a target price of Bt21.40. The company report 3Q22 net profit at Bt21m in 3Q22,(-99%YoY,-84%QoQ), The result came out below market and our expectation. 
3Q22 core earnings fell 42%QoQ The company report 3Q22 net profit at Bt21m. (-99%YoY -84%QoQ) Stripping out extra items 
Revenue hit 11-quarter high at Bt1.7bn (+5%QoQ +951%YoY) QoQ increase supported by high-margin advertising segment, bowling and concession revenue. YoY surge in revenue will be supported by an increase 


MAJOR : Accumulate on Weakening 3Q22 Earnings

<ul>
<li>Maintain BUY rating for MAJOR but cut target price to Bt21.40 (Previous TP:Bt23.70) after cut 2023E earnings by 20% as we factor in revenue sharing model and higher-than-expected operating cost. </li>
<li>3Q22 core earnings is expected to drop 7%QoQ Expect the company to report 3Q22 net profit at Bt81m. (-38%QoQ -96%YoY) Stripping out extra items from; 1.) divestment of Thai Ticket </li>
<li>Revenue is expected to hit 11-quarter high at Bt1.7bn (+3%QoQ +935%YoY) QoQ increase should be driven by high-margin advertising segment (+23%QoQ to Bt173m), bowling (+35%QoQ to Bt99m)</li>
</ul>


Maintain BUY rating for MAJOR but cut target price to Bt21.40 (Previous TP:Bt23.70) after cut 2023E earnings by 20% as we factor in revenue sharing model and higher-than-expected operating cost. 
3Q22 core earnings is expected to drop 7%QoQ Expect the company to report 3Q22 net profit at Bt81m. (-38%QoQ -96%YoY) Stripping out extra items from; 1.) divestment of Thai Ticket 
Revenue is expected to hit 11-quarter high at Bt1.7bn (+3%QoQ +935%YoY) QoQ increase should be driven by high-margin advertising segment (+23%QoQ to Bt173m), bowling (+35%QoQ to Bt99m)


<ul>
<li>Maintain BUY rating for MAJOR with target price of Bt23.70. The company report 2Q22 net profit at Bt131m. Stripping out extra items on fair value adjustment and fire insurance claim</li>
<li>Impressive recovery in profit in 2Q22 Revenue reached 10-quarter high at Bt1.6bn following an increase in traffic at theatres(estimated at around 5.5 million vs.2.8 million in 1Q22and 0.9million in 2Q21)</li>
<li>Well-Managed cost from operation to be remained, resulted in improvement in gross profit margin to 26.8% compared with 11.1% in 1Q22 and -30.7% in 2Q21.</li>
</ul>


Maintain BUY rating for MAJOR with target price of Bt23.70. The company report 2Q22 net profit at Bt131m. Stripping out extra items on fair value adjustment and fire insurance claim
Impressive recovery in profit in 2Q22 Revenue reached 10-quarter high at Bt1.6bn following an increase in traffic at theatres(estimated at around 5.5 million vs.2.8 million in 1Q22and 0.9million in 2Q21)
Well-Managed cost from operation to be remained, resulted in improvement in gross profit margin to 26.8% compared with 11.1% in 1Q22 and -30.7% in 2Q21.


MAJOR : Entering Low Season in 3Q22 Before Hitting High in 4Q22

Thailand

Major Cineplex Group Public Company Limited operates movie theater chain under Major Cineplex name, and bowling alley chain under Major Bowl name. The Company also provides theater advertising services and concession stand rentals in its movie and bowling complexes.

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Major Cineplex Group (MAJOR TB)

The 2023 Box Office Looks Promising

Expect another year of recovery. The cinema industry has been suffering from COVID-19 restrictions, in particular social distancing measures that...

Asian Century Stocks

The Stocks to Own in Thailand – Vol. 39

We highlight 14 stocks in Thailand that look interesting to us based on our FVMR Methodology. Portfolio changes: Nine stocks remain, five new join...

A. Stotz Investment Research

MAJOR : Accumulate on Weakening 3Q22 Earnings

Maintain BUY rating for MAJOR with a target price of Bt21.40. The company report 3Q22 net profit at Bt21m in 3Q22, (-99%YoY,-84%QoQ), The result...

Pi Securities PCL, Thailand

MAJOR : Accumulate on Weakening Earnings

Maintain BUY rating for MAJOR but cut target price to Bt21.40 (Previous TP: Bt23.70) after cut 2023E earnings by 20% as we factor in revenue...

Pi Securities PCL, Thailand

MAJOR : Entering Low Season in 3Q22 Before Hitting High in 4Q22

Maintain BUY rating for MAJOR with target price of Bt23.70. The company report 2Q22 net profit at Bt131m. Stripping out extra items on fair value...

Pi Securities PCL, Thailand

Price Gauge

52-week Range

Market Cap (USDm)

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