Asean-focused. Ex-Head of Thai Research

Athaporn Arayasantiparb, CFA

Asean (Thailand) Focused Independent Research

M Corp Review

M Corp is led by Athaporn Arayasantiparb who served as Head of Research for UOB and ANZ in Thailand and was an award-winning telecoms analyst at UBS in 2010 (AsiaMoney Thailand category) and Regional Strategist for DMG in Singapore. Prior to that, he also served as Kasikornbank credit analyst and scholar. He has a total work experience of 17 years, of which 14 were in research and 4 in research management roles. He started his career as an engineer for PTT and currently manages family investments. He holds an MBA from Stern (NYU) and CFA Charter since 2006. Apart from IPO Radar, which focuses on future listings, MCorp Review also provides six on-going thematic series ranked by frequency in descending order, namely: 1) Silicon Stories (technology) 2) Sathorn Series (financial services) 3) Thai-Coons (billionaire origin stories) 4) Reality Check (data-driven, investigative) 5) Thai Media Spotlight; and 6) Thai Macro Watch (global market drivers).

Equity Capital Markets

TQR, which is an acronym for Team Quality Relationship, is a new small-cap reinsurer that will IPO on the MAI, advised by Jay Capital. MCorp Review explored many aspects of this new and interesting company.<ul>
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IPO is good for 230m shares or 26.1% of the company. Post-IPO, the founding Panipa family would be diluted to 44.4%, but still retain a strong controlling interest.</li>
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Business. 35.8% of revenues came from traditional business, but the bulk from alternative business. TQR connects insurers such as Bangkok, Dhipya, and Maung Thai to reinsurers such as Swiss Re, Munich Re, and Thai Reinsurance.</li>
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Valuations. We value TQR at Bt4.7/sh using DDM method. Given the much smaller size compared to TQM, we do not expect the same valuations, but its strong net cash position means that it can offer a very attractive dividend yield. Furthermore, it is a stock that potentially benefits from the pandemic.</li>
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Key risks to our investment case includes: 1) pandemic; 2) credit ratings; 3) concentration risks; 4) competitive rivalry; 5) cyber attacks; and 6) regulatory risks.</li>
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TQR, which is an acronym for Team Quality Relationship, is a new small-cap reinsurer that will IPO on the MAI, advised by Jay Capital. MCorp Review explored many aspects of this new and interesting company.

IPO is good for 230m shares or 26.1% of the company. Post-IPO, the founding Panipa family would be diluted to 44.4%, but still retain a strong controlling interest.

Business. 35.8% of revenues came from traditional business, but the bulk from alternative business. TQR connects insurers such as Bangkok, Dhipya, and Maung Thai to reinsurers such as Swiss Re, Munich Re, and Thai Reinsurance.

Valuations. We value TQR at Bt4.7/sh using DDM method. Given the much smaller size compared to TQM, we do not expect the same valuations, but its strong net cash position means that it can offer a very attractive dividend yield. Furthermore, it is a stock that potentially benefits from the pandemic.

Key risks to our investment case includes: 1) pandemic; 2) credit ratings; 3) concentration risks; 4) competitive rivalry; 5) cyber attacks; and 6) regulatory risks.


IPO Radar: TQR, Small Cap Reinsurer With Strong Potential

Thailand

TQR Pcl. specialises in the insurance and financial services sector in Thailand.

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TQR Pcl. (TQR TB)

IPO Radar: TQR, Small Cap Reinsurer With Strong Potential

TQR is a new insurance reinsurer small cap IPO. Any price under Bt4.7/sh looks really compelling for a sector that benefits from the pandemic and a...

Athaporn Arayasantiparb, CFA

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