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><strong>SEAFCO’s 2Q20 net profit was at Bt72m (-29%YoY, -24%QoQ). The lowest level in the past nine quarter. The result accounts for 51% of our full-year forecast and in line with our expectation.</strong></p>
<div>• The company’s backlog as of 2Q20 was at Bt2.2bn which is sufficient for the company to recognize revenue until end of 1Q21.</div>
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<div>• We are seeing some progress and intention from the government on rolling out number of infrastructure projects in the past few months. This create positive sentiment for the listed constructors that involving in these projects.</div>
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<div>• Revise up earnings by 41-48% in 2021-22E to account in revenue recognition from several infrastructure projects.</div>
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<p><strong>We upgrade rating for SEAFCO to BUY from HOLD with the new target price of Bt6.80 (Previous TP 5.30) after EPS upward revision. The target price derived from 12.1xPE’21E ,Asia ex-japan industrial sector.</strong></p>

SEAFCO’s 2Q20 net profit was at Bt72m (-29%YoY, -24%QoQ). The lowest level in the past nine quarter. The result accounts for 51% of our full-year forecast and in line with our expectation.
• The company’s backlog as of 2Q20 was at Bt2.2bn which is sufficient for the company to recognize revenue until end of 1Q21.

• We are seeing some progress and intention from the government on rolling out number of infrastructure projects in the past few months. This create positive sentiment for the listed constructors that involving in these projects.

• Revise up earnings by 41-48% in 2021-22E to account in revenue recognition from several infrastructure projects.

 

We upgrade rating for SEAFCO to BUY from HOLD with the new target price of Bt6.80 (Previous TP 5.30) after EPS upward revision. The target price derived from 12.1xPE’21E ,Asia ex-japan industrial sector.

SEAFCO: Plenty of New Projects to Add into Backlog

<p>We initiate coverage of <a href="https://www.smartkarma.com/entities/13861" target="_blank" data-smartkarma-citation="entities:13861:1">Seafco Pcl (SEAFCO TB)</a> with a BUY rating, based on a target price of Bt12.40 derived from 19xPE’19E, which is its average trading range in the past five years and reflects a 50% discount to its domestic peers in the industrials sector.</p>
<p><strong>The story:</strong></p>
<ul>
<li>Outperforming peers thanks to its specialization in foundation works</li>
<li>Sitting on a large backlog</li>
<li>New era for domestic infrastructure investment</li>
</ul>
<p><strong>Risks:  </strong></p>
<ul>
<li>Difficulty in finding skilled workers</li>
<li>Fluctuations in raw material prices</li>
<li>Unstable revenue from core business</li>
</ul>

We initiate coverage of Seafco Pcl (SEAFCO TB) with a BUY rating, based on a target price of Bt12.40 derived from 19xPE’19E, which is its average trading range in the past five years and reflects a 50% discount to its domestic peers in the industrials sector.
The story:

Outperforming peers thanks to its specialization in foundation works
Sitting on a large backlog
New era for domestic infrastructure investment

Risks:  

Difficulty in finding skilled workers
Fluctuations in raw material prices
Unstable revenue from core business


SEAFCO: Top Civil Foundation Contractor Eyes EEC Opportunities

Thailand

Pylon PCL is a group of engineers that focuses on foundation works. The Company's products and services include bored piles, jet grouting, and diaphragm walls. Pylon provides services to both the private and public sectors and to both main contractors and project owners.

Pre-Built PCL is a full service construction company. The Company provides contracting services as well as manufactures and distributes construction materials.

Christiani & Nielsen (Thai) Public Company Limited and its subsidiaries specialize in construction and engineering. The Company and its subsidiaries undertake a wide range of projects including industrial buildings, commercial buildings and residential buildings, civil and marine works and major infrastructure projects. The Company also involves in property development.

TRC Construction PCL offers engineering and construction services.  The Company serves the oil and gas, petrochemical, and pharmaceutical industries.

TTCL PCL builds factories.  The Company constructs chemical, power, and biodiesel plants.

EMC Public Company Limited provides engineering and construction services. The Company's business units focus on electrical and mechanical construction, oil and natural gas construction, environmental engineering, general construction, and infrastructure construction.

Syntech Construction PCL specializes in construction and civil engineering.  Its projects include hotels, vacation resorts, high-rise office and apartment buildings, hospitals, factories, shopping centers, and waste water treatment plants and systems.  Its subsidiaries are involved in trading of building materials and equipment, and in property development.

Ua Withya PCL manufactures transmission line towers, substation steel structures and provides hot-dipped galvanizing services.

Nawarat Patanakarn Public Company Limited, a general construction firm, builds major infrastructure projects such as roads, highways, bridges, expressways, berths, and power plants.  Other construction projects include residential projects, shopping complexes, and industrial factories.

Thai Polycons PCL is a full service commercial construction company. The Company's projects include universities, hotels, offices, and malls.

WLS Holdings Limited, through its subsidiaries, provides scaffolding for public housing, private residential and commercial buildings construction, repairs, maintenance and renovation works, and landslip preventive and remedial works to slopes and retaining walls.  The Company also manufactures plastic ties for its own use.

CNQC International Holdings Ltd is a contractor in the foundation industry and machinery leasing business.

SEEDHEIWA Co., Ltd. designs, constructs, and manages real estate properties. The Company also provides consultation services on taxation, financing, and maintenance of real estate properties to landowners.  Seed as well provides brokerage services on sales and leasing of buildings.

SONEC CORPORATION constructs residential, institutional, and commercial buildings.  The Company also performs civil engineering works for water, sewage, and road projects.  Additionally, Sonec operates freight trucking businesses for chemicals and industrial waste.

The Kaneshita Construction Co., Ltd. is a general contractor based in Kinki region.  The Company performs road paving and asphalt recycling.  Kaneshita also constructs a variety of infrastructure and buildings.  Additionally, The Company operates green planting and industrial waste disposal businesses.

IL&FS Engineering and Construction Company Ltd. offers infrastructure development and contracting services. The Company builds irrigation projects, roads and bridges, and buildings infrastructure.

Il&Fs Engineering & Construction (IECC IN)

Camus Engineering & Construction Inc. builds prefabricated homes and constructs apartment complexes.  The Company also operates automobile import agency of Citroen, rental business, and precast concrete manufacturing business.

PESTECH International Bhd. offers industrial electric power contracting services. The Company provides contracting services for engineering, procurement, manufacturing, construction, and commissioning aspects of project planning. PESTECH offers their services globally for various types and sizes of projects.

Namkwang Engineering & Construction Co., Ltd. offers civil engineering and architectural services for both public and private customers.  The Company builds dams, tunnels, airports, apartment complexes, office buildings, and industrial plants.

Namkwang Engineering & Constructn (001260 KS)

Ahmad Zaki Resources Berhad is an investment holding company.  The Company, through its subsidiaries, provides contractor services for civil and structural construction works, operates in property development, and trades oils, gases, marine fuels, lubricants, and petroleum-based products.

Seafco Public Company Limited is a construction and engineering company that uses Bored Piles and Diaphragm Wall (D-Wall) and underground engineering technology to provide cost-effective solutions for foundation problems, basement construction and development of underground facilities and sub-structure works in Bangkok and other large cities.

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Seafco PCL (SEAFCO TB)

SEAFCO: Plenty of New Projects to Add into Backlog

SEAFCO’s 2Q20 net profit was at Bt72m (-29%YoY, -24%QoQ). The lowest level in the past nine quarter. The result accounts for 51% of our full-year...

Pi Securities PCL, Thailand

SEAFCO: Top Civil Foundation Contractor Eyes EEC Opportunities

We initiate coverage of Seafco Pcl (SEAFCO TB) with a BUY rating, based on a target price of Bt12.40 derived from 19xPE’19E, which is its average...

Pi Securities PCL, Thailand

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