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 CBG with a HOLD rating, based on a target price of Bt89, which is derived from 33xPE’20E, close to the average of the Thailand Beverage group.
The story:
<ul>
<li>Expanding customer base through new energy drink product</li>
<li>Potential growth from overseas markets</li>
<li>Ample room to improve gross profit margin</li>
<li>ICUK group turnaround</li>
<li>Benefit from growth of global energy drinks market</li>
</ul>
Risks:
<ul>
<li>Raw material price fluctuation</li>
<li>Exchange rate fluctuation</li>
<li>Highly competitive industry</li>
</ul>
Background: Carabao Group Public Company Limited (CBG) was established and incorporated on Aug. 22, 2001. CBG engages in manufacturing, marketing, selling and distributing energy drinks and other beverages in a vertically integrated manner starting with upstream production of key packaging materials, i.e. glass bottles and aluminum cans, down the chain to the bottling and canning of finished products as well as distribution-channel management both domestically and internationally. Moreover, the company has expanded its operation into Europe, most notably the UK.

We initiate coverage of CBG with a HOLD rating, based on a target price of Bt89, which is derived from 33xPE’20E, close to the average of the Thailand Beverage group.
The story:

Expanding customer base through new energy drink product
Potential growth from overseas markets
Ample room to improve gross profit margin
ICUK group turnaround
Benefit from growth of global energy drinks market

Risks:

Raw material price fluctuation
Exchange rate fluctuation
Highly competitive industry

Background: Carabao Group Public Company Limited (CBG) was established and incorporated on Aug. 22, 2001. CBG engages in manufacturing, marketing, selling and distributing energy drinks and other beverages in a vertically integrated manner starting with upstream production of key packaging materials, i.e. glass bottles and aluminum cans, down the chain to the bottling and canning of finished products as well as distribution-channel management both domestically and internationally. Moreover, the company has expanded its operation into Europe, most notably the UK.

CBG: Valuation Running Ahead of Fundamentals

Thailand

AgriPure Holding Public Company Limited is an agricultural holding company, through its subsidiaries, the Company produces, distributes and exports processed sweet corn, fresh and organic tropical vegetables.

TSTE Public Company Limited is a supplier of sugar products. The Company offers ship transfer, warehouse rental, dock, and warehousing services. TSTE also operate a warehouse business for both bulk and sack types, including cargo handling and packaging change services.

Lam Soon (Thailand) Public Company Limited produces and distributes refined palm oil products under the Yok, Moonlight, and Knife brand names, shortening and margarine under Zest, Yok, Golden Leaf, Fry Fry, HighFat, K-One and Do-Fat brand names.  Additionally, the Company produces detergent under Zip, L.Q. and Zippy brand names, and steel polisher under the Brasso brand name.

Patum Rice Mill and Granary Public Company Limited produces and distributes packaged rice under Kao Mah Boonkrong brand name. Its products are sold domestically and exported to overseas markets.  The company is also involved in power generation and distribution.

Malee Group Public Company Limited produces and exports canned food and drink products including fruits, fruit juices, juice concentrate, vegetables and meat under its Malee, First Choice, Hunter and Farmer brand names.

Buriram Sugar Pcl produces and distributes white and raw sugar throughout Thailand.

Tropical Canning Thailand PCL produces canned seafood products. Through its subsidiaries, the Company develops real estate properties and operates agribusiness.

Khonburi Sugar Pcl manufactures sugar.  The Company buys sugar cane and processes it into sugar.

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

Siam Food Products Public Company Limited produces canned pineapple, canned fruit salad, and concentrate pineapple juice under Siam Food brand name. Majority of its products are exported to North America, Germany, and the United Kingdom.

Lifecore Biomedical, Inc. operates as a contract development and manufacturing company. The Company offers sterile injectable pharmaceutical products in syringes and vials as well as the manufactures pharmaceutical-grade sodium hyaluronate. Lifecore Biomedical serves customers worldwide.

TH Plantations Bhd is an investment holding company. The Company also cultivates palm oil, processes FFB, Markets CPO, PO, and FFB, as well as provides management services.

AOHATA Corporation produces and sells processed foods including various types of jams, sources, canned fruits, and desserts.  The Company mainly sells those products through Q.P. Corp. and Nakashimato Co., Ltd..

PT Austindo Nusantara Jaya Tbk ("ANJ") is a food and renewable energy company. The Company engages principally in palm oil and sago palm production and processing for food. As for renewable energy, it engages in power generation from geothermal and bio-gas. Austindo Nusantara Jaya also has less than 10% of its investments remaining in legacy businesses.

Teo Seng Capital Bhd. is an investment holding company principally involved in poultry farming. The Company is also involved in the manufacture and marketing of paper egg trays and animal feeds, along with the distribution of animal health products.

NAKAMURAYA CO., LTD. produces and sells Japanese cakes and crackers.  The Company also provides processed foods including Indian curry, pasta sauce and canned food under the NAKAMURAYA brand.

Del Monte Pacific Limited produces and markets packaged vegetable and fruit, beverage and culinary products. The Group has the exclusive right to use the Del Monte brand for packaged products in the USA, South America, Philippines, the Indian subcontinent and Myanmar, and the S&W brand for both packaged and fresh products globally except Australia and New Zealand.

Yunnan Yuntou Ecology and Environment Technology Co Ltd provides landscaping services in China including design, construction and plantation services.

China Starch Holdings Limited manufactures cornstarch. The Company also manufactures L-lysine hydrochloride salt and other ancillary corn-refined and corn-base products such as corn slurry, corn germ, corn fiber, corn glutten meal, and agricultural fertilizers.

Hanwell Holdings Ltd. manufactures, markets, and sells household consumer products, soya bean products, and paper products.  The Company also provides healthcare consultancy and hospital and hotel management services, develops properties, and provides management services to the Econ Minimart chain of stores.

TIPCO Foods PCL produces and bottles fruit juices and other beverages.  The Company produces orange, mixed fruit and vegetable juices; spring water; and mineral water.

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Tipco Foods (TIPCO TB)

CBG: Valuation Running Ahead of Fundamentals

We initiate coverage of CBG with a HOLD rating, based on a target price of Bt89, which is derived from 33xPE’20E, close to the average of the...

Pi Securities PCL, Thailand

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52-week Range

Market Cap (USDm)

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