Category

Thailand

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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Jul 05
0

Thailand: Kasikornbank PCL, Siam Commercial Bank PCL, Bangkok Bank Public and more

By | Daily Briefs, Thailand

In today’s briefing:

  • Kasikornbank (KBANK TB): Potential MSCI Inclusion
  • SCB – Steady Lending, Capital Growth
  • BBL : So Far so Good

Kasikornbank (KBANK TB): Potential MSCI Inclusion

By Brian Freitas

  • Kasikornbank PCL (KBANK-R TB) was deleted from the MSCI Thailand Index in June 2021 following the issuance of NVDR’s approaching its permitted limit of 25% of issued shares.
  • With 12 months since deletion complete and meeting market cap, liquidity and foreign room thresholds, Kasikornbank PCL (KBANK TB) could be added to the MSCI Thailand Index in August.
  • If added to the MSCI Thailand Index, we estimate passive trackers will need to buy 47.39m shares (US$199m; 3.9 days of ADV) of Kasikornbank PCL (KBANK TB) on 31 August.

SCB – Steady Lending, Capital Growth

By Daniel Tabbush

  • SCB is well-positioned to benefit from the delta in tourism
  • There will be a special dividend at mid-year, amount still unknown
  • BitKub acquisition announced last year, remains pending, may not go through

BBL : So Far so Good

By Pi Research

  • Maintain BUY for BBL with a target price of Bt159.00. We like its strong balance sheet to withstand uncertainty, sustainable profit growth, potential benefits from an upcycle of interest rates
  • A solid net profit in 2Q22 : We expect Bangkok Bank (BBL) to post a net profit of Bt7.4b in 2Q22, up 17% YoY (+4% QoQ). 
  • Lending growth in 2Q22 is expected to rise by 1% QoQ given an expected rise in business loans and loans made through the international network. Asset quality remains resilient

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Jul 01
0

Thailand: Kasikornbank PCL, BG Container Glass PCL and more

By | Daily Briefs, Thailand

In today’s briefing:

  • KBANK : Return to Normal Operations
  • BGC : Packaging Remains a Key Focus

KBANK : Return to Normal Operations

By Pi Research

  • Maintain BUY for KBANK with a target price of Bt174.00. We are optimistic about the joint venture between KBANK and JMT. Going forward, we expect KBANK’s profitability to increase 
  • A joint venture between KBANK and JMT:  KBANK joined with JMT Network (JMT) in establishing JK Asset Management Co., Ltd. (JK AMC). The establishment of JK AMC will allow KBANK 
  • KBANK plans to sell NPLs of Bt50bn to JK AMC within 2022, which will alleviate KBANK’s future NPLs, improve net interest margin (NIM), and reduce potential provisions 

BGC : Packaging Remains a Key Focus

By Pi Research

  • Yesterday site visit to BVP and BGP plants came out as neutral tone.We do see its underlying growth potential but believe both will not be a growth driver for 2022-23. 
  • Yesterday’s company visit came in at neutral tone : We visited BVP (Paper packaging manufacturer) at Pathumthani and BGP (PET and Plastic films packaging manufacture) at Ayutthaya. 
  • A challenging growth roadmap, but only time will tell: The company target to achieve sales to Bt25bn by 2025,representing a 19% 4Y CAGR (2021-25E) by M&A strategy focusing at businesses 

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Jun 30
0

Thailand: Total Access Communication and more

By | Daily Briefs, Thailand

In today’s briefing:

  • DTAC : Lower Costs Will Improve Earnings in 2Q22

DTAC : Lower Costs Will Improve Earnings in 2Q22

By Pi Research

  • We maintain our HOLD rating and TP of Bt47.60 based on DTAC’s tender offer price. We believe the company will benefit from seasonal low costs despite weak sales performance. 
  • Expect QoQ improvement in 2Q22 net profit : We expect 2Q22 net profit to be at Bt854m (-44% YoY, +18% QoQ) as a result of seasonal low costs. 
  • We expect 2Q22 revenue at Bt19bn (flat YoY, -4% QoQ). Top-line performance continues to struggle YoY and QoQ due to weak economic activity.

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