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

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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