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.

Equity Bottom-Up

<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 recommendation with a target price of Bt64.M’s 3Q22 net profit came in at Bt408m(-7%QoQ)and recovery from a loss of Bt257m in 3Q21,in-line our forecast and BB consensus estimated.</li>
<li>Solid 3Q22 earnings amid rising food costs Its net profit came out at Bt257m(-7%QoQ) and recovery from a loss of Bt257m in 3Q21.The 9M22 result accounted for 68%of our 2022E.</li>
<li>The YoY recovery in earnings driven by solid SSSG in three main brands (MK at +105%YoY, Yayoi at +83%YoY, (Laem Charoen Seafood) LCS at +118%YoY)</li>
</ul>


Maintain BUY recommendation with a target price of Bt64.M’s 3Q22 net profit came in at Bt408m(-7%QoQ)and recovery from a loss of Bt257m in 3Q21,in-line our forecast and BB consensus estimated.
Solid 3Q22 earnings amid rising food costs Its net profit came out at Bt257m(-7%QoQ) and recovery from a loss of Bt257m in 3Q21.The 9M22 result accounted for 68%of our 2022E.
The YoY recovery in earnings driven by solid SSSG in three main brands (MK at +105%YoY, Yayoi at +83%YoY, (Laem Charoen Seafood) LCS at +118%YoY)


<ul>
<li>Maintain BUY recommendation for M with a target price of Bt64. We expect the company to report 3Q22 net profit at Bt426m(-3%QoQ)and recovery from a loss of Bt257m in 3Q21.</li>
<li>Expect 3Q22 turn to profit but should be soften QoQ   We expect 3Q22 net profit to be at Bt426m (-3%QoQ), recovery from a loss of Bt257m in 3Q21.</li>
<li>Revenue in 3Q22 is expected at Bt4bn (+104%YoY,flat QoQ) supported by solid SSSG in three main brands(MK at +109%YoY,Yayoi at +85%YoY,LCS at +120%YoY)and the selling price adjustment in June 2022.  </li>
</ul>


Maintain BUY recommendation for M with a target price of Bt64. We expect the company to report 3Q22 net profit at Bt426m(-3%QoQ)and recovery from a loss of Bt257m in 3Q21.
Expect 3Q22 turn to profit but should be soften QoQ   We expect 3Q22 net profit to be at Bt426m (-3%QoQ), recovery from a loss of Bt257m in 3Q21.
Revenue in 3Q22 is expected at Bt4bn (+104%YoY,flat QoQ) supported by solid SSSG in three main brands(MK at +109%YoY,Yayoi at +85%YoY,LCS at +120%YoY)and the selling price adjustment in June 2022.  


<ul>
<li>Maintain BUY recommendation for M with a target price of Bt64. A strong earnings recovery outlook in restaurant with an additional catalyst from international tourist arrivals.</li>
<li>Solid SSSG amid rising inflation SSSG in three main brands remain solid at +170%YoY in July 2022 and SSSG is discount at 10-15% from pre-COVID level in Aug 2022 supported </li>
<li>Insignificant impact from minimum wage adjustment The restaurant business is a labor-intensive industry which depends very much on employees. Cost of employee accounted for 48%-52% of operating expense during 2019-2021.</li>
</ul>


Maintain BUY recommendation for M with a target price of Bt64. A strong earnings recovery outlook in restaurant with an additional catalyst from international tourist arrivals.
Solid SSSG amid rising inflation SSSG in three main brands remain solid at +170%YoY in July 2022 and SSSG is discount at 10-15% from pre-COVID level in Aug 2022 supported 
Insignificant impact from minimum wage adjustment The restaurant business is a labor-intensive industry which depends very much on employees. Cost of employee accounted for 48%-52% of operating expense during 2019-2021.


<ul>
<li>Maintain BUY recommendation for M with a target price of Bt64. M’s 2Q22 net profit came in at Bt439m (+62%QoQ) and recovery from a loss of Bt99m in 2Q21</li>
<li>Solid earnings amid rising food costs M reported a net profit of Bt439m in 2Q22 (+62%QoQ) and recovery from a loss of Bt99m in 2Q21.The 1H22 result accounted for 56% </li>
<li>The YoY recovery in earnings supported by top-line recovery and GPM expansion YoY from resuming dine-in services.</li>
</ul>


Maintain BUY recommendation for M with a target price of Bt64. M’s 2Q22 net profit came in at Bt439m (+62%QoQ) and recovery from a loss of Bt99m in 2Q21
Solid earnings amid rising food costs M reported a net profit of Bt439m in 2Q22 (+62%QoQ) and recovery from a loss of Bt99m in 2Q21.The 1H22 result accounted for 56% 
The YoY recovery in earnings supported by top-line recovery and GPM expansion YoY from resuming dine-in services.


Thailand

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

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MK Restaurants Group (M TB)

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

M : Solid 3Q22 Earnings as Expected

Maintain BUY recommendation with a target price of Bt64. M’s 3Q22 net profit came in at Bt408m (-7%QoQ) and recovery from a loss of Bt257m in 3Q21,...

Pi Securities PCL, Thailand

M : Expect 3Q22 Profit to Remain Solid

Maintain BUY recommendation for M with a target price of Bt64. We expect the company to report 3Q22 net profit at Bt426m (-3%QoQ) and recovery from...

Pi Securities PCL, Thailand

M : Bright Earnings Outlook in 2022-24

Maintain BUY recommendation for M with a target price of Bt64. A strong earnings recovery outlook in restaurant with an additional catalyst from...

Pi Securities PCL, Thailand

M : Solid 2Q22 Earnings as Expected

Maintain BUY recommendation for M with a target price of Bt64. M’s 2Q22 net profit came in at Bt439m (+62%QoQ) and recovery from a loss of Bt99m in...

Pi Securities PCL, Thailand

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