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

<p>We initiate coverage of SCGP with a HOLD rating and a 2021 target price of Bt39.00, derived from 21.3x PE’21E, based on 1.6x PEG. We like the company’s commanding market position in Southeast Asia and its growth potential from M&amp;As. However, it is trading at quite a demanding valuation.</p><p>The story:</p><div>• Leader in SEA packaging industry</div><div></div><div>• Established footprint in markets with high growth potential</div><div></div><div>• 25-84% EPS 2021E upside if it can leverage its debt ratio to 1.0-1.5x</div><div></div><div>• Trading at quite a premium to its Asian packaging peers and its parent company</div><div></div><div>• Expect earnings to grow at 13% CAGR in 2021-22E</div><div>
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</div><p>Risks:  Foreign exchange rate fluctuation</p><p>            Raw material price fluctuation</p><p>            Decline in printing industry</p>

We initiate coverage of SCGP with a HOLD rating and a 2021 target price of Bt39.00, derived from 21.3x PE’21E, based on 1.6x PEG. We like the company’s commanding market position in Southeast Asia and its growth potential from M&amp;As. However, it is trading at quite a demanding valuation.The story:• Leader in SEA packaging industry• Established footprint in markets with high growth potential• 25-84% EPS 2021E upside if it can leverage its debt ratio to 1.0-1.5x• Trading at quite a premium to its Asian packaging peers and its parent company• Expect earnings to grow at 13% CAGR in 2021-22E
 
Risks:  Foreign exchange rate fluctuation            Raw material price fluctuation            Decline in printing industry

Leading Market Position Reflected in Valuation

Thailand

SCG Packaging Public Company Limited provides packaging services and solutions. The Company offers fiber-based packaging, performance and polymer packaging, and food service products, as well as designing and printing services. SCG Packaging serves customers worldwide.

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SCG Packaging (SCGP TB)

Leading Market Position Reflected in Valuation

We initiate coverage of SCGP with a HOLD rating and a 2021 target price of Bt39.00, derived from 21.3x PE’21E, based on 1.6x PEG. We like the...

Pi Securities PCL, Thailand

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