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

<ul>
<li>Maintain BUY with a new target price of Bt139 (from Bt149) due to a net profit downgrade. Our valuation is derived from the Gordon Growth Model (ROE 9%, growth 2%)</li>
<li>Management had more cautious views on potential impacts from higher inflation and the Russia-Ukraine war.</li>
<li>Net profit in 1Q22 came in line with our expectations at Bt10.2bn (+1% YoY, +29% QoQ).</li>
</ul>


Maintain BUY with a new target price of Bt139 (from Bt149) due to a net profit downgrade. Our valuation is derived from the Gordon Growth Model (ROE 9%, growth 2%)
Management had more cautious views on potential impacts from higher inflation and the Russia-Ukraine war.
Net profit in 1Q22 came in line with our expectations at Bt10.2bn (+1% YoY, +29% QoQ).


SCB: Recovery Slowdown on a Rise in Economic Uncertainty

<ul>
<li>Maintain BUY with a target price of Bt149.Our BUY call reflects steady earnings growth,resilient asset quality, and compelling valuation. Our valuation is derived from the Gordon Growth Model (ROE 9.5%</li>
<li>Net profit will likely rise 2% YoY (+30% QoQ) in 1Q22 given higher net interest income from elevated loans and lower provisions.</li>
<li>The S&amp;P Global Rating downgrade will likely have minimal impacts on SCB’s fundamentals.</li>
</ul>


Maintain BUY with a target price of Bt149.Our BUY call reflects steady earnings growth,resilient asset quality, and compelling valuation. Our valuation is derived from the Gordon Growth Model (ROE 9.5%
Net profit will likely rise 2% YoY (+30% QoQ) in 1Q22 given higher net interest income from elevated loans and lower provisions.
The S&amp;P Global Rating downgrade will likely have minimal impacts on SCB’s fundamentals.


SCB: More Challenging Ahead from New Regulations

<ul>
<li>Maintain BUY with a target price at Bt149. Our BUY call reflects steady earnings growth, resilient asset quality, and leadership in digital banking services</li>
<li>Digital banking services remain a focus ahead. SCB expects moderate lending growth and credit costs to likely decline in 2022.</li>
<li>SCB X will offer newly-issued shares and make a tender offer for all of SCB’s shares in 1Q22.</li>
</ul>


Maintain BUY with a target price at Bt149. Our BUY call reflects steady earnings growth, resilient asset quality, and leadership in digital banking services
Digital banking services remain a focus ahead. SCB expects moderate lending growth and credit costs to likely decline in 2022.
SCB X will offer newly-issued shares and make a tender offer for all of SCB’s shares in 1Q22.


<ul>
<li>We expect SCB’s net profit to strongly rise 50% YoY to Bt7.4bn in 4Q21, underpinned by lower provisions and higher net fee income. But the profit is likely </li>
<li>Thai economy is expected to be stronger in 2022 due to higher consumptions and continued rise in exports.An improvement in economic activities would boost new loan demands and ease NPLs </li>
<li>SCB will concentrate on supporting existing customers rather than acquiring new ones in 2022. It will expand non-interest income from wealth management, insurance, and investment rather than aggressively provide loans.</li>
</ul>


We expect SCB’s net profit to strongly rise 50% YoY to Bt7.4bn in 4Q21, underpinned by lower provisions and higher net fee income. But the profit is likely 
Thai economy is expected to be stronger in 2022 due to higher consumptions and continued rise in exports.An improvement in economic activities would boost new loan demands and ease NPLs 
SCB will concentrate on supporting existing customers rather than acquiring new ones in 2022. It will expand non-interest income from wealth management, insurance, and investment rather than aggressively provide loans.


<ul>
<li>With a new holding company, SCB will be able to unlock value for its high growth potential companies ahead. SCB’s earnings are expected to strongly rebound in 2021 and continuing</li>
<li>Earnings are expected to resume a positive growth of 29% YoY in 2021 and continue rising15-12% YoY for 2022-23 after we revised up our earnings projections by 7%/9%/10% for 2021-23</li>
<li>Plans to establish SCB X as a parent company for SCB Group was approved by its shareholders on 15 Nov. A new restructuring company is likely to complete in 1H22 </li>
</ul>


With a new holding company, SCB will be able to unlock value for its high growth potential companies ahead. SCB’s earnings are expected to strongly rebound in 2021 and continuing
Earnings are expected to resume a positive growth of 29% YoY in 2021 and continue rising15-12% YoY for 2022-23 after we revised up our earnings projections by 7%/9%/10% for 2021-23
Plans to establish SCB X as a parent company for SCB Group was approved by its shareholders on 15 Nov. A new restructuring company is likely to complete in 1H22 


Thailand

SCB X Public Company Limited provides banking services. The Bank offers accounts, loans, cards, deposits, insurance, investment, payment, digital banking, and other related services. SCB X serves customers worldwide.

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Siam Commercial Bank (SCB TB)

SCB: Recovery Slowdown on a Rise in Economic Uncertainty

Maintain BUY with a new target price of Bt139 (from Bt149) due to a net profit downgrade. Our valuation is derived from the Gordon Growth Model...

Pi Securities PCL, Thailand

SCB: More Challenging Ahead from New Regulations

Maintain BUY with a target price of Bt149. Our BUY call reflects steady earnings growth, resilient asset quality, and compelling valuation. Our...

Pi Securities PCL, Thailand

SCB: Going More Digital Services

Maintain BUY with a target price at Bt149. Our BUY call reflects steady earnings growth, resilient asset quality, and leadership in digital banking...

Pi Securities PCL, Thailand

SCB: Focusing on Quality of Growth

We expect SCB’s net profit to strongly rise 50% YoY to Bt7.4bn in 4Q21, underpinned by lower provisions and higher net fee income. But the profit...

Pi Securities PCL, Thailand

SCB: Positive Growth Momentum Intact

With a new holding company, SCB will be able to unlock value for its high growth potential companies ahead. SCB’s earnings are expected to strongly...

Pi Securities PCL, Thailand

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