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

PLAT reported 2Q18 net profit of Bt199m (+7%YoY, -2%QoQ). The 1H18 result was 48% of our full-year forecast and in line with our forecast.  
<ul class="">
<li>2Q18 sales grew 5.3%YoY due to the increasing of rental rate from renewing the expired lease agreements of The Platinum Fashion Mall</li>
<li>Gross profit margin was widen to 65.0% from 63.2% in 2Q17 due to the yearly raising of rental rates and increasing of income from public areas management.</li>
</ul>
We rate PLAT as a BUY with 28% upside to our target price of Bt9.4*.
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PLAT reported 2Q18 net profit of Bt199m (+7%YoY, -2%QoQ). The 1H18 result was 48% of our full-year forecast and in line with our forecast.  

2Q18 sales grew 5.3%YoY due to the increasing of rental rate from renewing the expired lease agreements of The Platinum Fashion Mall
Gross profit margin was widen to 65.0% from 63.2% in 2Q17 due to the yearly raising of rental rates and increasing of income from public areas management.

We rate PLAT as a BUY with 28% upside to our target price of Bt9.4*.
…

PLAT: Powerful Name Enjoys Robust Earnings Growth and Wide Margin

We initiate coverage on PLAT with a BUY rating, based on a target price of Bt9.4 and derived from the DCF methodology (WACC 10.8% and terminal growth 1%), or equivalent to 26.7xPE’18E, which is a 10% discount from its domestic peers.The story:<ul><li>Solid recurring income from prominent-brand hotels and malls</li><li>Revenue expansion expected after less lucrative contracts expire</li><li>Rental area to triple within next five years</li><li>Massive hotel room additions to spur strong earnings growth</li></ul>Risks:<ul><li>Economic slowdown</li><li>Failure of investments and future projects</li></ul>Background: The Platinum Group Public Company Limited (PLAT) was established in 2002 to operate commercial real estate leasing. Its company first project was the Platinum Fashion Mall, which has been operating since 2005 as one of Thailand’s largest retail clothing centers and as a one-stop wholesale shopping destination. PLAT then opened the Novotel Bangkok Platinum next door to its Platinum Fashion Mall Phase Two building in 2011.

We initiate coverage on PLAT with a BUY rating, based on a target price of Bt9.4 and derived from the DCF methodology (WACC 10.8% and terminal growth 1%), or equivalent to 26.7xPE’18E, which is a 10% discount from its domestic peers.The story:Solid recurring income from prominent-brand hotels and mallsRevenue expansion expected after less lucrative contracts expireRental area to triple within next five yearsMassive hotel room additions to spur strong earnings growthRisks:Economic slowdownFailure of investments and future projectsBackground: The Platinum Group Public Company Limited (PLAT) was established in 2002 to operate commercial real estate leasing. Its company first project was the Platinum Fashion Mall, which has been operating since 2005 as one of Thailand’s largest retail clothing centers and as a one-stop wholesale shopping destination. PLAT then opened the Novotel Bangkok Platinum next door to its Platinum Fashion Mall Phase Two building in 2011.

PLAT: Mall Operator to Make Precious Metal from Sales and Rental Growth

Thailand

The Platinum Group PCL manages and operates a wholesale and retail shopping mall. The Company also operates a hotel business. The Platinum Group operates in Thailand.

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Platinum Group PCL (PLAT TB)

PLAT: Powerful Name Enjoys Robust Earnings Growth and Wide Margin

PLAT reported 2Q18 net profit of Bt199m (+7%YoY, -2%QoQ). The 1H18 result was 48% of our full-year forecast and in line with our forecast. 2Q18...

Pi Securities PCL, Thailand

PLAT: Mall Operator to Make Precious Metal from Sales and Rental Growth

We initiate coverage on PLAT with a BUY rating, based on a target price of Bt9.4 and derived from the DCF methodology (WACC 10.8% and terminal...

Pi Securities PCL, Thailand

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