Category

Thailand

Jul 30
0

Daily Brief Thailand: Krung Thai Bank Pub and more

By | Daily Briefs, Thailand

In today’s briefing:

  • Thai Banks 2Q22 Screener; Krung Thai Stands Out

Thai Banks 2Q22 Screener; Krung Thai Stands Out

By Victor Galliano

  • The six Thai banks that we cover all have relatively healthy credit quality, NPL coverage and sound capital adequacy ratios; also, positive cost of risk trends support the earnings outlook
  • Of these, Krung Thai Bank stands out, with its low cost of risk, healthy post-provision profitability versus peers and its undemanding valuation multiples along with its low PEG ratio
  • TMBThanchart is one to watch in the deep value category, especially given its attractive cost of risk trends to 2Q22

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Jul 27
0

Daily Brief Thailand: Kiatnakin Bank and more

By | Daily Briefs, Thailand

In today’s briefing:

  • KKP : Solid Growth, High Dividends

KKP : Solid Growth, High Dividends

By Pi Research

  • Maintain BUY for KKP with a new target price of Bt84.00.Given a better-than-expected result in 2Q22 and new financial guidance, we increased our net profit projections by 7-8% in 2022-24.
  • Analyst meeting We are opportunistic after attending the analyst meeting on 25 July. Management adjusted its 2022 financial guidance as follows: (i) loan growth of 16% YoY (from 12%) 
  • KKP raised its hire purchase interest rate by around 25bp to mitigate the impact higher funding costs that were likely increase going forward.It maintained a loan spread of 5.1%in 2022

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Jul 26
0

Daily Brief Thailand: Thai Life Insurance and more

By | Daily Briefs, Thailand

In today’s briefing:

  • Thai Life Insurance (TLI): Borderline SET50 Fast Entry

Thai Life Insurance (TLI): Borderline SET50 Fast Entry

By Brian Freitas

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Jul 25
0

Daily Brief Thailand: Thai Life Insurance, Total Access Communication and more

By | Daily Briefs, Thailand

In today’s briefing:

  • Weekly Deals Digest (24 Jul): Thai Life, Bharat FIH, Link, DTAC/True, Pendal, Tassal, Ramsay, AOF
  • Merger Arb Mondays (25 Jul) – DTAC/True, Ramsay Health, Link Admin, VNET, Alliance Aviation
  • Thai Life Insurance IPO: Trading Debut

Weekly Deals Digest (24 Jul): Thai Life, Bharat FIH, Link, DTAC/True, Pendal, Tassal, Ramsay, AOF

By Arun George

Merger Arb Mondays (25 Jul) – DTAC/True, Ramsay Health, Link Admin, VNET, Alliance Aviation

By Arun George

Thai Life Insurance IPO: Trading Debut

By Arun George

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Jul 24
0

Daily Brief Thailand: Thai Life Insurance, Bangkok Bank Public, Siam Commercial Bank and more

By | Daily Briefs, Thailand

In today’s briefing:

  • Thai Life Insurance IPO Trading – One for Domestics and Cornerstones
  • BBL : Sustaining Growth Amid Uncertainty
  • SCB : Recovery Amidst Rising Global Risks

Thai Life Insurance IPO Trading – One for Domestics and Cornerstones

By Sumeet Singh

  • Thai Life Insurance (TLI) raised around US$975m in its Thailand IPO. Cornerstone investors, including GIC, took up around 54% of the deal.
  • Thai Life Insurance is one of the largest life insurance companies in Thailand, third by assets. As of Mar 2022, it had 64,000 insurance agents.
  • In this note, we talk about allocation and the trading dynamics

BBL : Sustaining Growth Amid Uncertainty

By Pi Research

  • Maintain BUY for BBL with a target price of Bt159. withstand uncertainty, sustainable profit growth, potential benefits from an upcycle of interest rates, and undemanding valuation. BBL’s 2Q22 net profit
  • 2Q22 results BBL reported a net profit of Bt7.0bn in 2Q22, up 10% YoY           (-2% QoQ), which was 6% lower than expected on higher provisions. The YoY rise was supported
  • Lending growth in 2Q22 increased by 2.5% QoQ due to large corporate loans and loans made through the international network.The NPL ratio slightly increased to 3.4% and the coverage ratio 

SCB : Recovery Amidst Rising Global Risks

By Pi Research

  • Maintain BUY for SCB with a target price of Bt139.00. SCB’s 2Q22 net profit came in line with our expectation of Bt10bn (+14% YoY, -1% QoQ). Asset quality remained resilient 
  • Analyst meeting We are neutral after attending the analyst meeting on 21 July. SCB adjusted some2022 financial guidance to reflect its 1H22 performance and potential effects on the economic environment.
  • Despite the volatility in the cryptocurrency market,SCB would continue to pursue its business expansion in digital asset businesses.  SCB mentioned that it had minimal cryptocurrency exposure of less than US$1m.

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Jul 23
0

Daily Brief Thailand: True Corp Pcl and more

By | Daily Briefs, Thailand

In today’s briefing:

  • DTAC/True Merger: Shares Decline on Noise About NBTC Subcommittees Voting Decision

DTAC/True Merger: Shares Decline on Noise About NBTC Subcommittees Voting Decision

By Arun George

  • Total Access Communication (DTAC TB) and True Corp Pcl (TRUE TB) shares declined as reports suggest that NBTC’s subcommittees voted 3:1 AGAINST the merger. True said the reports are false.
  • An earlier press conference by CP Group and Telenor ASA (TEL NO) reiterated that the NBTC could only prescribe remedial measures. A court ruling on 16 June supports this view.
  • NBTC will allegedly review the subcommittees’ findings on 26-27 July. We think this development results in the NBTC prescribing harsher remedial conditions to the merger rather than blocking it. 

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Jul 21
0

Daily Brief Thailand: PTT E&P, Central Plaza Hotel and more

By | Daily Briefs, Thailand

In today’s briefing:

  • PTTEP : Strong 2Q22 Performance Outlook
  • CENTEL : Expect CENTEL to Make Profit in 2Q22

PTTEP : Strong 2Q22 Performance Outlook

By Pi Research

  • We estimate PTTEP’s 2Q22 net profit to surge 170%YoY and 83%QoQ on the back of higher sales volume and average selling price.The solid performance is expected to continue in 2H22 
  • Bright 2Q22 earnings outlook We expect PTTEP to post 2Q22 net profit of Bt19.3bn (+170% YoY, +83% QoQ), driven by solid average selling price and sales volume.
  • The average selling price (ASP) is forecasted to increase to US$56/BOE (+32% YoY, +8% QoQ) as the reference Dubai crude oil price rose to US$108/bbl (+61% YoY,+13% QoQ) and gas

CENTEL : Expect CENTEL to Make Profit in 2Q22

By Pi Research

  • Maintain BUY recommendation for CENTEL with a target price of Bt49.0. We expect the company performance to turn a profit at Bt57m in 2Q22 from Bt44m loss in 1Q22
  • Strong recovery in hospitality business. We expect hotel revenue to hit nine quarter high at Bt1.4bn thanks to impressive performance for Thai hotels as RevPar for Bangkok and Upcountry hotels
  • Food revenue is expected to hit 11 quarter high at Bt2.9bn (+24%YoY+11%QoQ) as we anticipate continuing SSSG at 6.1% compared with 0% and 10% in 2Q21 and 1Q22 respectively. 

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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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