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>We initiate coverage on SCB with a BUY rating, based on a target price of Bt 124.50. Our target price derived from 0.99xAVG PBV (target ROE at 8.2% and long term growth at 2%), implying 5-years trading average of Thailand banks.</strong></p><p><strong>The story:</strong></p><p>• Potential loan growth post-COVID with better quality</p><p>• Strong recurring non-interest income amid Covid-19 crisis</p><p>• Improving asset quality</p><p><strong>Risks:</strong></p><p>• Higher NPLs that would cause higher provisions set aside</p><p>• Prolong low interest rate would decrease NIM</p><p>• Delay in vaccine roll-out</p>

We initiate coverage on SCB with a BUY rating, based on a target price of Bt 124.50. Our target price derived from 0.99xAVG PBV (target ROE at 8.2% and long term growth at 2%), implying 5-years trading average of Thailand banks.The story:• Potential loan growth post-COVID with better quality• Strong recurring non-interest income amid Covid-19 crisis• Improving asset qualityRisks:• Higher NPLs that would cause higher provisions set aside• Prolong low interest rate would decrease NIM• Delay in vaccine roll-out

SCB: Largest Retail Loan Portfolio Amongst Big Banks

<p><strong>We initiate coverage of AUCT with a BUY rating, based on a target price of Bt11.5, which is derived from 24xPE’20E, in line with the valuation of Thailand’s consumer discretionary sector.</strong></p>
<p><strong>The story:</strong></p>
<div>•Simple business model with high margins</div>
<div>•Rising NPL rate to boost vehicle volume</div>
<div>•Auto sector still looks supportive</div>
<div>•New S curve for AUCT</div>
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<p><strong>Risks: </strong>Reliance on a few suppliers</p>
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<strong>Background:</strong> AUCT Public Company Limited (AUCT) provides services as an intermediary that conducts auctions for all types of property, as well as other auction-related services such as transportation of auctioned properties and finding bidders by coordinating with financial firms. Currently, the company has 27 storage units for auctioned property located in 26 provinces across Thailand. Moreover, it has 14 venues that can support every type of auction event.</div>

We initiate coverage of AUCT with a BUY rating, based on a target price of Bt11.5, which is derived from 24xPE’20E, in line with the valuation of Thailand’s consumer discretionary sector.
The story:
•Simple business model with high margins
•Rising NPL rate to boost vehicle volume
•Auto sector still looks supportive
•New S curve for AUCT

 

Risks: Reliance on a few suppliers

Background: AUCT Public Company Limited (AUCT) provides services as an intermediary that conducts auctions for all types of property, as well as other auction-related services such as transportation of auctioned properties and finding bidders by coordinating with financial firms. Currently, the company has 27 storage units for auctioned property located in 26 provinces across Thailand. Moreover, it has 14 venues that can support every type of auction event.

AUCT: Safe-Haven Stock in the Thai Market

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: Largest Retail Loan Portfolio Amongst Big Banks

We initiate coverage on SCB with a BUY rating, based on a target price of Bt 124.50. Our target price derived from 0.99xAVG PBV (target ROE at 8.2%...

Pi Securities PCL, Thailand

AUCT: Safe-Haven Stock in the Thai Market

We initiate coverage of AUCT with a BUY rating, based on a target price of Bt11.5, which is derived from 24xPE’20E, in line with the valuation of...

Pi Securities PCL, Thailand

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