Waraporn Wiboonkanarak

Krungthai XSpring

Equity Bottom-Up

<p>Company Update</p>
<div>
<h2>Mk Restaurant Group Plc. (M)</h2>
<div>
<p>Food &amp; Beverage</p>
<div>
<p><strong>2H20E earnings to recover HoH</strong></p>
<p>As a restaurant chain operator with a strong financial position, M is expected to see its 2H20E earnings recover HoH after the resumption of dine-in services at restaurants. The firm’s 2021E earnings are forecast to grow by 54%. The<br>current share price implies potential upside of 16% vs. our target price of Bt59 (DCF, WACC of 5%, terminal growth of 2%). We thus reaffirm a Buy rating.</p>
<div>
<p><strong>Despite challenges,</strong>…</p>
</div>
</div>
</div>
</div>

<p>Company Update</p>
<div>
<h2>Mk Restaurant Group Plc. (M)</h2>
<div>
<p>Food &amp; Beverage</p>
<div>
<h3>2H20E earnings to recover HoH</h3>
<div class="content-highlight">
<p>As a restaurant chain operator with a strong financial position, M is expected to see its 2H20E earnings recover HoH after the resumption of dine-in services at restaurants. The firm’s 2021E earnings are forecast to grow by 54%. The current share price implies potential upside of 16% vs. our target price of Bt59 (DCF, WACC of 5%, terminal growth of 2%). We thus reaffirm a Buy rating.</p>
</div>
<div>
<p><strong>Despite</strong>…</p>
</div>
</div>
</div>
</div>

<div>
<div>
<div>
<div>
<p>Earnings Review</p>
<div>
<div>
<div>
<div>
<h2>Mk Restaurant Group Plc. (M)</h2>
<div>
<div>
<div>
<div>
<p>Food &amp; Beverage</p>
<div>
<div>
<div>
<h3>Net loss in 2Q20; better 2H20E outlook</h3>
<div>
<div>
<div>
<div>
<div>
<p>We switch our rating to Buy (from Hold) to reflect i) the smaller-than- expected loss in 2Q20 and the expectation that its earnings have already bottomed out; ii) the better-than-expected dividend of Bt0.5/share for 1H20; iii) the expected earnings turnaround HoH in 2H20E after the reopening of all stores (but with negative SSSG); iv) anticipated 2021E earnings growth of 54%…</p>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>

<p>Company Update</p>
<h2>Mk Restaurant Group Plc. (M)</h2>
<p>Food &amp; Beverage</p>
<div>
<div>
<div>
<h3>2Q20E net loss expected; poor 2H20E SSSG outlook</h3>
<div>
<div>
<div>
<div>
<div class="content-highlight">
<p>M’s 2Q20E earnings are expected to have reversed to a net loss as a result of COVID-19. While its overall earnings may have bottomed out in 2Q20E and begun recovering after all outlets resumed operations, the firm’s overall SSSG is likely to remain in negative territory. In addition, higher swine prices may put the firm’s profit margin under pressure. We have therefore revised…</p>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>

<h2>Mk Restaurant Group Plc. (M)  </h2>
<p>Food &amp; Beverage  </p>
<p><strong>Earnings forecasts revised down to reflect current measures</strong></p>
<div class="content-highlight">
<p>The order to close department stores and allow restaurants to offer only delivery and takeaway service prompted us to revise down our 2020-21E earnings forecasts by a further 11% and 8%, which follows our most recent revision by over 30% in early March. Despite the gloomy outlook, M remains rather attractive for its debt-free position, strong free cash flow with cash on hand of…</p>
</div>

Thailand

MK Restaurants Group PCL operates restaurants. The Company supplies traditional Thai food.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00