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 maintain our BUY rating on TWPC with a 1H19E target price of Bt10.8, based on 15.0xPE’1H19E, which is its 3-year trading average.The story:Trimmed 2018-20F earnings forecast by 5-20%It is accumulating opportunityExpected bottom in 1H18Expected 14% CAGR earnings growth in 2018-20ERisks:  (1) Fluctuations in raw-material prices              (2) Appreciation of the baht

We maintain our BUY rating on TWPC with a 1H19E target price of Bt10.8, based on 15.0xPE’1H19E, which is its 3-year trading average.The story:Trimmed 2018-20F earnings forecast by 5-20%It is accumulating opportunityExpected bottom in 1H18Expected 14% CAGR earnings growth in 2018-20ERisks:  (1) Fluctuations in raw-material prices              (2) Appreciation of the baht

<h2>TWPC reported 1Q18 net profit of Bt55m (-59%YoY, -62%QoQ). The result was accounted for 8% of our full-year forecast.</h2><ul>
<li>1Q18 recurring profit was Bt68m (-50%YoY, +84%QoQ). A YoY decline was due to contraction of starch spread given the laggard in selling price increase compared to raw material. Meanwhile, a QoQ increase was thanks to a better margin and expenses control.</li>
<li>Revenue was solid at Bt1.8bn (+29%YoY, -5%QoQ), but Gross profit margin was narrow at 17.7%, compared to 26.9% in 1Q17 and 16.5%…</li>
</ul>

TWPC reported 1Q18 net profit of Bt55m (-59%YoY, -62%QoQ). The result was accounted for 8% of our full-year forecast.
1Q18 recurring profit was Bt68m (-50%YoY, +84%QoQ). A YoY decline was due to contraction of starch spread given the laggard in selling price increase compared to raw material. Meanwhile, a QoQ increase was thanks to a better margin and expenses control.
Revenue was solid at Bt1.8bn (+29%YoY, -5%QoQ), but Gross profit margin was narrow at 17.7%, compared to 26.9% in 1Q17 and 16.5%…


TWPC reported 4Q17 recurring EPS of Bt0.038, which was (-80%YoY and -70% QoQ). The company produced a 2017 recurring EPS of Bt0.43 (-40% YoY), which was 33% below our forecast.<ul>
<li>TWPC reported 4Q17 net profit of Bt145m (-33% YoY, +34% QoQ). Excluding extra items of Bt112m, its recurring profit was Bt33m (-80%YoY and 70% QoQ), mainly from operating margin shortfall (-10.9 ppts YoY, -7.8 ppts QoQ)</li>
<li>TWPC FY2017 net profit was Bt493m (-26% YoY), Excluding extra items of Bt112m, its recurring profit was…</li>
</ul>

TWPC reported 4Q17 recurring EPS of Bt0.038, which was (-80%YoY and -70% QoQ). The company produced a 2017 recurring EPS of Bt0.43 (-40% YoY), which was 33% below our forecast.
TWPC reported 4Q17 net profit of Bt145m (-33% YoY, +34% QoQ). Excluding extra items of Bt112m, its recurring profit was Bt33m (-80%YoY and 70% QoQ), mainly from operating margin shortfall (-10.9 ppts YoY, -7.8 ppts QoQ)
TWPC FY2017 net profit was Bt493m (-26% YoY), Excluding extra items of Bt112m, its recurring profit was…


TWPC : Dropped Performance in 4Q17 Due to Swell SG&A

We initiate coverage on TWPC with a BUY rating and a 2018E target price of Bt12.4, based on i) business valuation at Bt11.6, derived from 15.0x PER,  and ii) net cash at Bt0.8.The story:<ul><li>Proven impressive competitor for big export destinations</li><li>Killing two birds with one stone in CLMV</li><li>Potential upside from M&amp;A due to large idle cash reserve</li><li>Expect a 22% CAGR for EPS in 2018-19E</li></ul>Risks:<ul><li>Fluctuations in raw-material prices</li><li>Appreciation of the baht</li></ul>

We initiate coverage on TWPC with a BUY rating and a 2018E target price of Bt12.4, based on i) business valuation at Bt11.6, derived from 15.0x PER,  and ii) net cash at Bt0.8.The story:Proven impressive competitor for big export destinationsKilling two birds with one stone in CLMVPotential upside from M&amp;A due to large idle cash reserveExpect a 22% CAGR for EPS in 2018-19ERisks:Fluctuations in raw-material pricesAppreciation of the baht 

TWPC: Value Starch Maker Shows Decent Growth Potential

Thailand

Thai Wah Public Company Limited, through its subsidiaries, is principally engaged in the manufacture and distribution of vermicelli, noodle, and tapioca products.

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Thai Wah PCL (TWPC TB)

TWPC: Expected Up-Cycle in 2H18

We maintain our BUY rating on TWPC with a 1H19E target price of Bt10.8, based on 15.0xPE’1H19E, which is its 3-year trading average.The...

Pi Securities PCL, Thailand

TWPC: 1Q18 to Be the Bottom of the Year

TWPC reported 1Q18 net profit of Bt55m (-59%YoY, -62%QoQ). The result was accounted for 8% of our full-year forecast. 1Q18 recurring profit was...

Pi Securities PCL, Thailand

TWPC : Dropped Performance in 4Q17 Due to Swell SG&A

TWPC reported 4Q17 recurring EPS of Bt0.038, which was (-80%YoY and -70% QoQ). The company produced a 2017 recurring EPS of Bt0.43 (-40% YoY),...

Pi Securities PCL, Thailand

TWPC: Value Starch Maker Shows Decent Growth Potential

We initiate coverage on TWPC with a BUY rating and a 2018E target price of Bt12.4, based on i) business valuation at Bt11.6, derived from 15.0x...

Pi Securities PCL, Thailand

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