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

We initiate coverage of DOHOME with a HOLD rating based on a target price of Bt12.5. We derive our target price from 25xPE’21E, a 25% discount from the valuation of the biggest home-improvement player in Thailand.The story:<ul>
<li>Cheapest valuation with high growth compared to peers.</li>
<li>All stores are in locations of high potential demand.</li>
<li>60% store expansion planned in the next two years.</li>
<li>Ample room to boost margin.</li>
</ul>Risks:<ul>
<li>Economic slowdown</li>
<li>Exchange rate fluctuation</li>
<li>Highly competitive industry</li>
</ul>Background: Dohome Public Company Limited (DOHOME) operates a retail, wholesale, and service business in the construction materials and home decoration segments under the concept of a one-stop home products destination. It currently operates 10 branches in a range of urban and regional markets including Ubon Ratchathani, Nakhon Ratchasima, Rangsit, Khon Kaen, Udon Thani, Rama 2, Bang Bua Thong, Chiang Mai, and Bang Na. Moreover, Dohome has launched a new small store format -- “Dohome To Go” -- to attract retail customers in cooperation with department stores, supermarkets, hypermarkets and other marketplaces.

We initiate coverage of DOHOME with a HOLD rating based on a target price of Bt12.5. We derive our target price from 25xPE’21E, a 25% discount from the valuation of the biggest home-improvement player in Thailand.The story:
Cheapest valuation with high growth compared to peers.
All stores are in locations of high potential demand.
60% store expansion planned in the next two years.
Ample room to boost margin.
Risks:
Economic slowdown
Exchange rate fluctuation
Highly competitive industry
Background: Dohome Public Company Limited (DOHOME) operates a retail, wholesale, and service business in the construction materials and home decoration segments under the concept of a one-stop home products destination. It currently operates 10 branches in a range of urban and regional markets including Ubon Ratchathani, Nakhon Ratchasima, Rangsit, Khon Kaen, Udon Thani, Rama 2, Bang Bua Thong, Chiang Mai, and Bang Na. Moreover, Dohome has launched a new small store format -- “Dohome To Go” -- to attract retail customers in cooperation with department stores, supermarkets, hypermarkets and other marketplaces. 

DOHOME: Fastest Growing Home-Improvement Player in Thailand

We initiate coverage of <a href="https://www.smartkarma.com/entities/home-product-center-pcl" target="_blank" data-smartkarma-citation="entities:9906:1" rel="noopener">Home Product Center (HMPRO TB)</a> with a BUY rating, based on a target price of Bt15.0, which is derived from 33xPE’21E, a 40% premium to Thailand Consumer Discretionary Sector.The story:<ul>
<li>Improving margin is a key strength</li>
<li>Great opportunity to accumulate at bottomed-out SSSG</li>
<li>Store expansion is ongoing</li>
<li>Omni channel will be a key revenue driver in the long term</li>
</ul>Risks:<ul>
<li>Economic slowdown</li>
<li>Exchange rate fluctuation</li>
</ul>Background: Home Product Center Plc. was established on June 27, 1995 as a joint venture between Land and Houses Plc. and Quality Houses Plc. The company operates a retail business in the home improvement segment by selling goods and providing a complete range of services related to construction, additions, refurbishment, renovation, home makeovers and improvement of buildings, houses and residential places. It has built up a strong network of over 107 stores in Thailand with a further six branches in Malaysia that operate under the trade names of “HomePro”, “HomePro-S” and “Mega Home”.

We initiate coverage of Home Product Center (HMPRO TB) with a BUY rating, based on a target price of Bt15.0, which is derived from 33xPE’21E, a 40% premium to Thailand Consumer Discretionary Sector.The story:
Improving margin is a key strength
Great opportunity to accumulate at bottomed-out SSSG
Store expansion is ongoing
Omni channel will be a key revenue driver in the long term
Risks:
Economic slowdown
Exchange rate fluctuation
Background: Home Product Center Plc. was established on June 27, 1995 as a joint venture between Land and Houses Plc. and Quality Houses Plc. The company operates a retail business in the home improvement segment by selling goods and providing a complete range of services related to construction, additions, refurbishment, renovation, home makeovers and improvement of buildings, houses and residential places. It has built up a strong network of over 107 stores in Thailand with a further six branches in Malaysia that operate under the trade names of “HomePro”, “HomePro-S” and “Mega Home”.

HMPRO: The Best Home-Improvement Retailer in Thailand

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)

DOHOME: Fastest Growing Home-Improvement Player in Thailand

We initiate coverage of DOHOME with a HOLD rating based on a target price of Bt12.5. We derive our target price from 25xPE’21E, a 25% discount from...

Pi Securities PCL, Thailand

HMPRO: The Best Home-Improvement Retailer in Thailand

We initiate coverage of Home Product Center (HMPRO TB) with a BUY rating, based on a target price of Bt15.0, which is derived from 33xPE’21E, a 40%...

Pi Securities PCL, Thailand

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