Category

Thailand

Jul 20
0

Daily Brief Thailand: Bangkok Expressway and Metro and more

By | Daily Briefs, Thailand

In today’s briefing:

  • BEM : Expect 2Q22 Earnings to Hit 11 Quarter High

BEM : Expect 2Q22 Earnings to Hit 11 Quarter High

By Pi Research

  • Maintain BUY recommendation for BEM with a target price of Bt9.50.We expect the company to report 2Q22 net profit at Bt577m,the highest level in the past 11 quarter, mainly supported
  • Strong recovery in earnings in2Q22 and 2H22 2Q22 Revenue shall be reported at Bt3.3bn (+36%YoY +6%QoQ) supported by solid rebound in daily average MRT ridership to 231k trips (+94%YoY +23%QoQ) 
  • We anticipate average daily MRT ridership to recover substantially in 2H22 to around 310k trips by end of this year,the level last time we have seen in Nov’21. However, pre-COVID

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Jul 19
0

Daily Brief Thailand: Siam Cement, Total Access Communication and more

By | Daily Briefs, Thailand

In today’s briefing:

  • SCC : Meaningful QoQ Recovery Expected in 2Q22
  • DTAC : Better 2H22 Outlook from Tourism Recovery

SCC : Meaningful QoQ Recovery Expected in 2Q22

By Pi Research

  • We maintain our BUY call with a TP of Bt445 based on 13.7xPE’22E,which is close to its 10-years trailing mean. We recommend investors to accumulate in light of 4% yield 
  • Solid QoQ improvement expected in 2Q22 core profit We forecast 2Q22 core profit at Bt9.2bn,decline 46%YoY but edge-up 19%QoQ.The YoY erosion is due to weaker assumed gross margin of 16.2%
  • We foresee chemical unit’s profit to fall 63%YoY but to march up 8%QoQ with wider spreads. In our view, the QoQ uptrend is underpin by solid PVC spread (+41%QoQ), despite 

DTAC : Better 2H22 Outlook from Tourism Recovery

By Pi Research

  • We maintain our HOLD rating and TP of Bt47.60 based on DTAC’s tender offer price. Conference call came with negative tone, as management lowered its guidance on core service revenue 
  • 2Q22 core profit was below expectation 2Q22 net profit was at Bt1bn (-34% YoY, +38% QoQ), growing QoQ due to a one-time Bt1bn deductible granted by the NBTC
  • Excluding extraordinary items, 2Q22 core profit should be at Bt573m, 33% below our forecast, declining both QoQ and YoY due to losses in subsidizing handset sales to attract subscribers.

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Jul 16
0

Daily Brief Thailand: MK Restaurants Group, Tisco Financial Group and more

By | Daily Briefs, Thailand

In today’s briefing:

  • M : Time to Harvest
  • TISCO : Small but Strong

M : Time to Harvest

By Pi Research

  • We recommend BUY for M supported by three main reason:1) a strong earnings recovery outlook in 2022-24,2) net cash position with upside from new M&A deal and LCS franchise fees
  • Earnings is expected to turn positive and strongly QoQ improvement in 2Q22 We expect 2Q22 net profit to be at Bt444m (+64%QoQ), recovery from a loss of Bt99m in 2Q21
  • Rising food costs are manageable   Most of costs are raw material costs and the major portion of food cost are pork and poultry.

TISCO : Small but Strong

By Pi Research

  • Maintain BUY for TISCO with a target price of Bt106.00.We like its high dividend payment and solid fundamentals.TISCO’s net profit was 6% better than expected at Bt1.85bn in 2Q22,up 11%YoY
  • Despite lingering competition in the auto hire purchase market, loan growth would likely accelerate in 2H22 given an improvement in the chip shortage in the automotive industry. 
  • Credit costs would likely stay low for the next few years to potentially offset negative impacts from muted fee income from the volatility in the capital market.

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Jul 15
0

Daily Brief Thailand: SCG Packaging Public Company Limited and more

By | Daily Briefs, Thailand

In today’s briefing:

  • SCGP : Time to Repack for Brighter 2H22 Outlook

SCGP : Time to Repack for Brighter 2H22 Outlook

By Pi Research

  • We retain our BUY rating with a TP of Bt66 derived from 33xPE’22E which is close to its 3-years trailing mean. We recommend investors to increase position in SCGP ahead 
  • Modest recovery in 2Q22, post 1Q22 bottom : We estimate 2Q22 core profit at Bt1.9bn (-8%YoY, +12%QoQ) based on assuming gross margin of 17.4% (-3.1ppts YoY, +0.3ppts QoQ). 
  • Likewise, we forecast the company to register revenue at Bt38.1bn (+28%YoY, +4%QoQ). The YoY rise is attributed to healthier demand volume and M&Ps contribution, upon the resumption of economic activities 

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Jul 14
0

Daily Brief Thailand: Siam Commercial Bank and more

By | Daily Briefs, Thailand

In today’s briefing:

  • SCB X (SCB TB) – The Song Remains the Same

SCB X (SCB TB) – The Song Remains the Same

By Angus Mackintosh

  • SCB X has been a slightly disappointing performer since its restructuring under a new holding company to allow for a reallocation of capital towards growing tech areas.
  • A key overhang has been its sizable planned investment into leading Thai crypto exchange BitKub but the due diligence for this has been extended signalling a potential cancellation. 
  • The bank’s core business is recovering with loan growth recovering and credit costs coming down plus strong growth in digital banking reducing costs. Valuations are attractive on 0.7x FY22E PBV.

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Jul 13
0

Daily Brief Thailand: Thanachart Capital and more

By | Daily Briefs, Thailand

In today’s briefing:

  • TCAP : A Dividend Play

TCAP : A Dividend Play

By Pi Research

  • We initiate coverage of TCAP with a HOLD rating and a target price of Bt39.00. We expect TCAP’s net profit will decline by 10% YoY in 2022 before turning 
  • Positive lending growth intact despite uncertainties The Bank of Thailand (BOT) estimates Thailand’s economy will expand by 3.3% YoY in 2022 on the back of an improvement in domestic demand
  • We expect TCAP’s lending growth to continue rising by 10% YoY in 2022 (2021:+7% YoY), supported by higher demand for hire purchase lending via Ratchthani Leasing (THANI) and higher SME 

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Jul 09
0

Thailand: Sri Trang Gloves (Thailand) Public Company Limited and more

By | Daily Briefs, Thailand

In today’s briefing:

  • Sri Trang Gloves (STGT TB): 2022 Started On a Weak Note; Lower ASP Is Industry Wide Phenomena

Sri Trang Gloves (STGT TB): 2022 Started On a Weak Note; Lower ASP Is Industry Wide Phenomena

By Tina Banerjee

  • Sri Trang Gloves (Thailand) Public Company Limited (STGT TB) reported record high sales volume due to strong demand in existing markets and expansion into new markets.
  • However, lower ASP as a result of additional supply in the market, dragged down revenue and profitability of the company. No recovery in ASP is seen in near-term.
  • By leveraging on its locational advantage for NR glove, focusing on fast growing developing markets, and launching high-margin surgical glove in Thailand, STGT is well-positioned to outpace its Malaysian peers.

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Jul 07
0

Thailand: Delta Electronics Thai and more

By | Daily Briefs, Thailand

In today’s briefing:

  • DELTA: Shortage Issue Still Persists Despite Concerns on Weakening Demand in 2022

DELTA: Shortage Issue Still Persists Despite Concerns on Weakening Demand in 2022

By Pi Research

  • We maintain our BUY rating and TP of Bt419 based on based on 51.7xPE’22E. Business update meeting last Friday came with positive news on improving shortage situation by 4Q22 
  • 2Q22E earnings to decline QoQ: We believe that 2Q22E net profit will be at Bt2.7bn (+61% YoY, -4% QoQ).
  • We expect 2Q22E sales to be at Bt24bn (+15%YoY, -4% QoQ). QoQ decline is mainly due to lockdown issues in China and longer holidays during 2Q22.

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Jul 06
0

Thailand: Advanced Info Service, Jasmine Broadband Internet Infrastructure Fund and more

By | Daily Briefs, Thailand

In today’s briefing:

  • Jasmine Acquisition To Expand Advanced’s Broadband Footprint
  • JASIF : Contract Cancellation Will Affect Dividend Payment
  • ADVANC : Large Boost to Broadband Business Growth
  • Advanced Info Service (ADVANC.BK) – Return Of Roaming Fees

Jasmine Acquisition To Expand Advanced’s Broadband Footprint

By David Blennerhassett

JASIF : Contract Cancellation Will Affect Dividend Payment

By Pi Research

  • Downgrade to HOLD fom BUY and cut TP by 28% to Bt8.80 derived form DCF (WACC=8.02%, g=0%) to factor in significant reduction in revenue and dividend from 2023 
  • A non-attractive deal for JASIF shareholders: On July 4th 2022, JAS informed SET that, ADVANC is considering purchase of 99.99% of TTTBB and 19% of total JASIF units at Bt8.5 
  • In that case,The Amended Rental Assurance agreement that generates a superior rental rate of770/km/month will be cancelled which will cause a dip of 30%in the revenue generation of JASIF in2023onwards.

ADVANC : Large Boost to Broadband Business Growth

By Pi Research

  • We maintain our BUY rating and TP of Bt259 based on based on DCF,representing 26.4xPE’22E. Analyst meeting yesterday on ADVANC’s acquisition of TTTBB and JASIF units came with positive tone
  • The deal should be highly favorable for ADVANC:We believe that the entire transaction could provide a 8.5% upside to our current forecasted 23E EPS through Adjusted EPS, leading to Bt11.54/share.
  • 2Q22E earnings will keep 22E earnings on track We believe that 2Q22E net profit will be at Bt6.5bn(-7% YoY, +4% QoQ).Seasonal low costs, despite high competition, will lead to QoQ 

Advanced Info Service (ADVANC.BK) – Return Of Roaming Fees

By Maybank Research

  • 2Q22E performance to recover thanks to tourists
  • 2Q22E core net profit to recover YoY and QoQ
  • Tourists to the rescue
  • ADVANC (BUY, THB230 TP) remains our Top Pick

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