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

With strong earnings from a equity income provide an attractive dividend yield at 6%-7%. Therefore, we maintain our BUY rating with a new target price of Bt2.4 (down from Bt2.6) based on 10xPE’21E which its a five-years average.<ul>
<li>The fall in 1Q20 earnings both YoY and QoQ was primarily pressured by weakening earnings from residential business which sunk 81%YoY to Bt80m. Meanwhile, equity income dropped only 5.6% YoY to Bt431m.</li>
<li>We expect 2Q20 earnings to soft down 25%YoY and 10%QoQ, given lower contribution from associated companies especially from HMPRO. Meanwhile, we expect residential transfer units to remain weak QoQ due to low visited rate, but likely to be the bottom quarter.</li>
<li>We maintain positive view in 2020-21E backed by stable equity income from associated companies (mostly from HMPRO) and several projects in pipeline worth over Bt48bn.</li>
</ul>

With strong earnings from a equity income provide an attractive dividend yield at 6%-7%. Therefore, we maintain our BUY rating with a new target price of Bt2.4 (down from Bt2.6) based on 10xPE’21E which its a five-years average.
The fall in 1Q20 earnings both YoY and QoQ was primarily pressured by weakening earnings from residential business which sunk 81%YoY to Bt80m. Meanwhile, equity income dropped only 5.6% YoY to Bt431m.
We expect 2Q20 earnings to soft down 25%YoY and 10%QoQ, given lower contribution from associated companies especially from HMPRO. Meanwhile, we expect residential transfer units to remain weak QoQ due to low visited rate, but likely to be the bottom quarter.
We maintain positive view in 2020-21E backed by stable equity income from associated companies (mostly from HMPRO) and several projects in pipeline worth over Bt48bn.


Site visit at The ESSE at Singha Complex and The ESSE Sukhumvit 36 came out with a positive tone. We maintain BUY rating on S with a 2019 target price of Bt4.2 derived from a sum-of-the-parts (SOTP) methodology and implying 17.5xPE’19EKey takeaway:<ul>
<li>2H19 performance of residential business (70% of total sales) will be much better than 1H19. 70% of The ESSE ‘s total units with Bt3.5bn potential sales will be recognized by this year.</li>
<li>Hospitality business (30% of total sales) is under pressure by the close of Maya Bay in Phi Phi for the next five years. However, we do not include this project in our valuation.</li>
</ul>

Site visit at The ESSE at Singha Complex and The ESSE Sukhumvit 36 came out with a positive tone. We maintain BUY rating on S with a 2019 target price of Bt4.2 derived from a sum-of-the-parts (SOTP) methodology and implying 17.5xPE’19EKey takeaway:
2H19 performance of residential business (70% of total sales) will be much better than 1H19. 70% of The ESSE ‘s total units with Bt3.5bn potential sales will be recognized by this year.
Hospitality business (30% of total sales) is under pressure by the close of Maya Bay in Phi Phi for the next five years. However, we do not include this project in our valuation.


S: Better Outlook on Its 2H19 Performance

Thailand

Nirvana Development Public Company Limited operates as a real estate development company. The Company develops high-rise and low-rise residential projects, as well as manufactures and distributes pile, beam, concrete slap and fence, and aluminum doors and windows. Nirvana Development serves customers in Thailand.

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Nirvana Development (NVD TB)

QH: Expect 2Q20 to Be the Bottom Quarter

With strong earnings from a equity income provide an attractive dividend yield at 6%-7%. Therefore, we maintain our BUY rating with a new target...

Pi Securities PCL, Thailand

S: Better Outlook on Its 2H19 Performance

Site visit at The ESSE at Singha Complex and The ESSE Sukhumvit 36 came out with a positive tone. We maintain BUY rating on S with a 2019 target...

Pi Securities PCL, Thailand

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