Thai Equity - Bottom-up - Equities, Pi Securities PCL, Thailand

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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

TTW reported 1Q18 net profit of Bt668m (+13% YoY, -1% QoQ). The 1Q18 result was 22% of our full-year forecast and in line with our forecast.<ul>
<li>TTW reported 1Q18 net profit of Bt668m.(+13% YoY, -1% QoQ) due mainly from sales volume growth.</li>
<li>1Q18 sales was Bt1.4bn.(+8% YoY) and reached the ten-quarter high level because sales volume increased 11%YoY and water tariff of PWA increased from the previous year. </li>
<li>Gross profit margin narrowed to 71.3% from 71.6% in 4Q17</li>
</ul>We rate TTW as a BUY with 33% upside to…

TTW reported 1Q18 net profit of Bt668m (+13% YoY, -1% QoQ). The 1Q18 result was 22% of our full-year forecast and in line with our forecast.
TTW reported 1Q18 net profit of Bt668m.(+13% YoY, -1% QoQ) due mainly from sales volume growth.
1Q18 sales was Bt1.4bn.(+8% YoY) and reached the ten-quarter high level because sales volume increased 11%YoY and water tariff of PWA increased from the previous year. 
Gross profit margin narrowed to 71.3% from 71.6% in 4Q17
We rate TTW as a BUY with 33% upside to…

TTW: Highest Revenue Growth in Ten Quarters

We initiate coverage on TTW with a BUY rating, based on a target price of Bt16.4, which is derived from TTW core business by DCF methodology (WACC 6.8% and Terminal growth 0%) at Bt13.8 and CKP of Bt2.6. The total value via sum of the parts at Bt16.4The story:<ul><li>On track to maintain position as market leader</li><li>Second plant is on standby for production to start</li><li>Overseas investment will be new growth driver</li><li>Laos hydro project bolsters share value</li></ul>Risks:  (1) Drought conditions lead to raw-material shortage            (2) The electricity outages            (3) High rates for non-revenue water            (4) Lifeblood contract expires in five yearsBackground: TTW Public Company Limited was established in 2000, then known as Thai Tap Water Public Company Limited, and its core business is to produce and distribute tap water to the PWA in the west and southwest of Bangkok, covering Nakhon Pathom and Samut Sakhon provinces. The company has a maximum production capacity of 540,000 cubic meters/day and the minimum tap-water-purchase contract from PWA was 354,000 cubic meters/day, or about70% of its maximum production capacity.Note: The PWA is a state enterprise and a monopolized entity for supplying water in provincial areas of Thailand.

We initiate coverage on TTW with a BUY rating, based on a target price of Bt16.4, which is derived from TTW core business by DCF methodology (WACC 6.8% and Terminal growth 0%) at Bt13.8 and CKP of Bt2.6. The total value via sum of the parts at Bt16.4The story:On track to maintain position as market leaderSecond plant is on standby for production to startOverseas investment will be new growth driverLaos hydro project bolsters share valueRisks:  (1) Drought conditions lead to raw-material shortage            (2) The electricity outages            (3) High rates for non-revenue water            (4) Lifeblood contract expires in five yearsBackground: TTW Public Company Limited was established in 2000, then known as Thai Tap Water Public Company Limited, and its core business is to produce and distribute tap water to the PWA in the west and southwest of Bangkok, covering Nakhon Pathom and Samut Sakhon provinces. The company has a maximum production capacity of 540,000 cubic meters/day and the minimum tap-water-purchase contract from PWA was 354,000 cubic meters/day, or about70% of its maximum production capacity.Note: The PWA is a state enterprise and a monopolized entity for supplying water in provincial areas of Thailand.

TTW: Largest Private Tap-Water Producer in Thailand

Thailand

TTW PCL (Formerly known as "Thai Tap Water") is a water utility company that supplies water in the provinces of Nakhon Pathom and Samut Sakhon, and Pathumthani-Rangsit area.

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TTW (TTW TB)

TTW: Highest Revenue Growth in Ten Quarters

TTW reported 1Q18 net profit of Bt668m (+13% YoY, -1% QoQ). The 1Q18 result was 22% of our full-year forecast and in line with our forecast. TTW...

Pi Securities PCL, Thailand

TTW: Largest Private Tap-Water Producer in Thailand

We initiate coverage on TTW with a BUY rating, based on a target price of Bt16.4, which is derived from TTW core business by DCF methodology (WACC...

Pi Securities PCL, Thailand

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