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 recommendation for GLOBAL with a target price of Bt22. GLOBAL’s 2Q22 earnings came in at Bt1bn (+6%YoY, -11%QoQ), better than our forecast and 5% above BB consensus estimated. </li>
<li>Healthy margin boost 2Q22 earnings grew YoY GLOBAL reported a net profit of Bt1bn in 2Q22 (+6%YoY, -11%QoQ).</li>
<li>The YoY growth in 2Q22 earnings supported by a record high of gross profit margin at 26.4% and an increase in revenue.</li>
</ul>


Maintain BUY recommendation for GLOBAL with a target price of Bt22. GLOBAL’s 2Q22 earnings came in at Bt1bn (+6%YoY, -11%QoQ), better than our forecast and 5% above BB consensus estimated. 
Healthy margin boost 2Q22 earnings grew YoY GLOBAL reported a net profit of Bt1bn in 2Q22 (+6%YoY, -11%QoQ).
The YoY growth in 2Q22 earnings supported by a record high of gross profit margin at 26.4% and an increase in revenue.


<ul>
<li>Maintain BUY recommendation for GLOBAL and roll over target price to Bt22. Our new target price reflects PE de-rating and 2023 earnings downward revision by 7%. We expect the company </li>
<li>Expect 2Q22 earnings to flat YoY We expect 2Q22 net profit to be at Bt960m(-1%YoY, -17%QoQ)as a result of rising products costs, lower margin from steel products and QoQ drop</li>
<li>We expect GLOBAL to post 2Q22 revenue at Bt9bn (+2%YoY, -6%QoQ). The YoY growth in revenue driven by SSSG of +1% and new stores expansion during the past 12 months. </li>
</ul>


Maintain BUY recommendation for GLOBAL and roll over target price to Bt22. Our new target price reflects PE de-rating and 2023 earnings downward revision by 7%. We expect the company 
Expect 2Q22 earnings to flat YoY We expect 2Q22 net profit to be at Bt960m(-1%YoY, -17%QoQ)as a result of rising products costs, lower margin from steel products and QoQ drop
We expect GLOBAL to post 2Q22 revenue at Bt9bn (+2%YoY, -6%QoQ). The YoY growth in revenue driven by SSSG of +1% and new stores expansion during the past 12 months. 


GLOBAL : Expect 2Q22 Earnings to Flat YoY

<ul>
<li>We reiterate BUY rating for GLOBAL with a target price of Bt25.0 based on 35xPE’22E, close to the average of the Thailand home-improvement subsector.</li>
<li>We expect GLOBAL to report 1Q22 net profit at Bt967m (flat YoY, +30%QoQ).</li>
<li>QoQ growth will be supported by high season quarter with a solid SSSG at+7.5%YoY in 1Q22 together with economic recovery as shown by Farm income Index was at Bt215 (+9%YoY)</li>
</ul>


We reiterate BUY rating for GLOBAL with a target price of Bt25.0 based on 35xPE’22E, close to the average of the Thailand home-improvement subsector.
We expect GLOBAL to report 1Q22 net profit at Bt967m (flat YoY, +30%QoQ).
QoQ growth will be supported by high season quarter with a solid SSSG at+7.5%YoY in 1Q22 together with economic recovery as shown by Farm income Index was at Bt215 (+9%YoY)


GLOBAL: Expect Earnings Increase QoQ from Seasonal Factor

<ul>
<li>We reiterate BUY rating for GLOBAL with a lower target price of Bt27.0 (-7% from previous TP) based on 35xPE’22E, average of the Thailand home-improvement subsector</li>
<li>We expect GLOBAL to report 4Q21 net profit at Bt687m (+82%YoY, +4%QoQ), supported by (1) a solid SSSG at +15%YoY,and (2) gross profit margin expansion from a higher revenue contribution </li>
<li>YoY decrease in gross profit margin caused by a higher revenue contribution from low margin products and an increase in marketing promotion.</li>
</ul>


We reiterate BUY rating for GLOBAL with a lower target price of Bt27.0 (-7% from previous TP) based on 35xPE’22E, average of the Thailand home-improvement subsector
We expect GLOBAL to report 4Q21 net profit at Bt687m (+82%YoY, +4%QoQ), supported by (1) a solid SSSG at +15%YoY,and (2) gross profit margin expansion from a higher revenue contribution 
YoY decrease in gross profit margin caused by a higher revenue contribution from low margin products and an increase in marketing promotion.


GLOBAL: Expect 4Q21 Earnings to Remain Strong QoQ and YoY

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

<ul>
<li>Asset World, Banpu Public and Ngern Tid Lor are being added to the <a href="https://www.smartkarma.com/entities/stock-exchange-of-thailand-set-50-index" target="_blank" data-smartkarma-citation="entities:31493:1" rel="noopener">SET 50 Index (SET50 INDEX)</a> while Berli Jucker, Delta Electronics and Sri Trang Agro will be deleted.</li>
<li>Estimated one-way turnover is 5.83% and results in a one-way trade of THB 4,957m. The deletions of BJC/ DELTA will result in a funding inflow to the other index constituents.</li>
<li>
<a href="https://www.smartkarma.com/entities/asset-world-corp-pcl" target="_blank" data-smartkarma-citation="entities:28136:1" rel="noopener">Asset World Corporation (AWC TB)</a> is a surprise to an extent with the name not appearing on most lists on the street. We had it as a low probability inclusion.</li>
</ul>


Asset World, Banpu Public and Ngern Tid Lor are being added to the SET 50 Index (SET50 INDEX) while Berli Jucker, Delta Electronics and Sri Trang Agro will be deleted.
Estimated one-way turnover is 5.83% and results in a one-way trade of THB 4,957m. The deletions of BJC/ DELTA will result in a funding inflow to the other index constituents.

Asset World Corporation (AWC TB) is a surprise to an extent with the name not appearing on most lists on the street. We had it as a low probability inclusion.


SET50 December Index Rebalance: AWC, BANPU, TIDLOR Added; BJC, DELTA, STA Out

Thailand

Siam Global House PCL is a retailer of home related products for construction, repair, decoration, and renovation. The Company sells construction materials, hand tools, furniture, and garden tools.

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Siam Global House (GLOBAL TB)

GLOBAL : Margin Beats Our Expectation

Maintain BUY recommendation for GLOBAL with a target price of Bt22. GLOBAL’s 2Q22 earnings came in at Bt1bn (+6%YoY, -11%QoQ), better than our...

Pi Securities PCL, Thailand

GLOBAL : Expect 2Q22 Earnings to Flat YoY

Maintain BUY recommendation for GLOBAL and roll over target price to Bt22. Our new target price reflects PE de-rating and 2023 earnings downward...

Pi Securities PCL, Thailand

GLOBAL: Expect Earnings Increase QoQ from Seasonal Factor

We reiterate BUY rating for GLOBAL with a target price of Bt25.0 based on 35xPE’22E, close to the average of the Thailand home-improvement subsector.

Pi Securities PCL, Thailand

GLOBAL: Expect 4Q21 Earnings to Remain Strong QoQ and YoY

We reiterate BUY rating for GLOBAL with a lower target price of Bt27.0 (-7% from previous TP) based on 35xPE’22E, average of the Thailand home...

Pi Securities PCL, Thailand

SET50 December Index Rebalance: AWC, BANPU, TIDLOR Added; BJC, DELTA, STA Out

There are 3 changes to the SET50 index at the December rebalance. AWC, BANPU and TIDLOR will replace BJC, DELTA and STA. AWC is a 'surprise' and...

Brian Freitas

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