Category

Thailand

Jun 14
0

Thailand: Kiatnakin Bank, Thai Stanley Electric Pub Co and more

By | Daily Briefs, Thailand

In today’s briefing:

  • KKP – Small Enough To Grow
  • Thai Stanley Electric (STANLY.BK) – To Grow In Sync With Auto Industry

KKP – Small Enough To Grow

By Daniel Tabbush

  • This smaller Thai bank can more easily grow due to relatively small loan base
  • Strong core fundamentals of rising interest income and falling funding costs
  • Credit costs remain inflated, falling figures can support strong ROA growth

Thai Stanley Electric (STANLY.BK) – To Grow In Sync With Auto Industry

By Maybank Research

  • BUY for cheap valuation and high cash on hand
  • Auto production forecast to grow 6.8% in 2022
  • Strong recovery in FY22E, more growth in FY23E
  • High growth potential

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Jun 10
0

Thailand: True Corp Pcl, Prima Marine PCL, Krung Thai Bank Pub, PTG Energy PCL and more

By | Daily Briefs, Thailand

In today’s briefing:

  • True/​DTAC: NBTC Sees Merger Crimping GDP Growth
  • PRM : Earnings Growth Remain Dull
  • KTB: Limited Upside Gain Potential
  • PTG : Improving Sales & Marketing Margin

True/​DTAC: NBTC Sees Merger Crimping GDP Growth

By David Blennerhassett

  • According to the National Broadcasting and Telecommunications Commission, the merger of True (TRUE TB) and Total Access Communication (DTAC TB) could reduce Thailand’s GDP growth by between 0.05% and 1.99%.
  • That figure is dependent on the level of collusion after the merger takes place.
  • The study faced pushback due to a lack of data from other competing telco companies, and over-the-top players.

PRM : Earnings Growth Remain Dull

By Pi Research

  • Maintain HOLD recommendation for PRM with a target price at Bt6.30.We foresee limited room for the company’s earnings growth in the next 2-3years as a result from lack of concrete 
  • 2H22 expansion plan remains intact:TM’s second VLCC will go on-hire on 6th June 22 with a size of 280,000 DWT under 10 years,T/C contract with Thai Oil Group (BUY: Bt71.0)  
  • Overall revenue from three VLCCS and 13 unit of crew boats won’t be sufficient to offset the impact from rising global crude oil price, which trimmed down FSU demand 

KTB: Limited Upside Gain Potential

By Pi Research

  • Downgrade to HOLD (from BUY) with a target price of Bt16.70. Our downgrade reflects limited upside gain as a rise in share price is largely priced strong 1Q22 performance 
  • Quarterly earnings passed the peak level in 1Q22:Like other banks, KTB’s fundamentals have improved from the economic reopening and its resilient asset quality.
  • Positive sentiments from digital lottery ticket sales The Government Lottery Office (GLO) mentioned that more than 5m lottery tickets were sold through KTB’s Paotang G-wallet app.

PTG : Improving Sales & Marketing Margin

By Pi Research

  • The 2Q-2H22 outlook looks promising, thanks to solid oil sales volume growth owing to economic recovery from COVID grip and revamping tourism activities. The improving oil marketing margin 
  • Recovering MM should drive 2Q22 earnings : We expect the 2Q22 earnings to improve QoQ on the back of better sales volume and marketing margin.
  • The oil marketing margin should pick up to Bt1.7/liter in 2Q22(+3% QoQ)and remain at 1.7-to-1.8/Liter range in 2H22.From management guidance, the oil sales volume inched up 5% MoM and YoY

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Jun 08
0

Thailand: Thai Life Insurance and more

By | Daily Briefs, Thailand

In today’s briefing:

  • Thai Life Insurance Pre-IPO – The Negatives – Lacks Growth

Thai Life Insurance Pre-IPO – The Negatives – Lacks Growth

By Sumeet Singh

  • Thai Life Insurance is looking to raise up to US$1bn in its upcoming Thailand IPO.
  • 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 will talk about the not so positive aspects of the deal.

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Jun 07
0

Thailand: Thai Life Insurance and more

By | Daily Briefs, Thailand

In today’s briefing:

  • Thai Life Insurance Pre-IPO – The Positives – Resilient Performance with a Changing Product Mix

Thai Life Insurance Pre-IPO – The Positives – Resilient Performance with a Changing Product Mix

By Sumeet Singh

  • Thai Life Insurance is looking to raise up to US$1bn in its upcoming Thailand IPO.
  • 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 the positive aspects of the deal.

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Jun 03
0

Thailand: Bangkok Aviation Fuel Services and more

By | Daily Briefs, Thailand

In today’s briefing:

  • BAFS : Recovery Phase Has Kicked Off

BAFS : Recovery Phase Has Kicked Off

By Pi Research

  • Maintain BUY recommendation for BAFS with a target price of Bt34.0. Business performance are expected to turn profit by 3Q22, driven by recovery in aviation fuel services volume along
  • BAFS report 1Q22 net loss at Bt77m, the smallest loss in the past eight quarters. The result came out slightly above our expectation.
  • The least loss in the past eight quarters supported by dividend income recognition worth Bt50m from power plant business in Japan (acquired in 4Q21)and an increase in aviation fuel volume

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Jun 02
0

Thailand: Jaymart PCL and more

By | Daily Briefs, Thailand

In today’s briefing:

  • SET50 Index Rebalance Preview: Two High Probability Changes; One Low

SET50 Index Rebalance Preview: Two High Probability Changes; One Low

By Brian Freitas

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Jun 01
0

Thailand: Digital Telecommunications Infrastructure Fund and more

By | Daily Briefs, Thailand

In today’s briefing:

  • Digital Telecommunications Infrastructure Fund Placement – Routine Trim Down from Parent

Digital Telecommunications Infrastructure Fund Placement – Routine Trim Down from Parent

By Clarence Chu

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May 31
0

Thailand: Energy Absolute and more

By | Daily Briefs, Thailand

In today’s briefing:

  • EA: Awaiting EV & ESS Business Profit

EA: Awaiting EV & ESS Business Profit

By Pi Research

  • Last week analyst meeting came out in a neutral tone.We maintain the HOLD rating due to demanding valuation.Our target price of Bt80.0, is derived using SOTP methodology, implying 43x PE’22E.
  • Expect the 2Q22 earnings to grow both YoY and QoQ, on the back of 1) higher EV sales 2) better solar power plant operation and 3) improving biodiesel sales.
  • The company has secured order for 87 E-buses to be delivered in 2Q22 to Lotte group.And further target a sales of 1,000 buses in 2H22, and 2,500 to 3,000 units

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May 28
0

Thailand: Synnex Thailand, Electricity Generating and more

By | Daily Briefs, Thailand

In today’s briefing:

  • SYNEX: Maintain Healthy 22E Growth Despite Uncertainties
  • EGCO: Clean Energy Transition to Relegate ESG Concerns

SYNEX: Maintain Healthy 22E Growth Despite Uncertainties

By Pi Research

  • Maintain our BUY recommendation with TP of Bt29.75,derived from 27.0xPE’22 (+2SD of average 10-yr trading). Yesterday’s analyst meeting came out with neutral tone. While we are cautious of the inflationa
  • Management affirms that weakening consumer demand, shortages caused by China lockdowns and Russo-Ukrainian War, and weakening Baht will not impact SYNEX’s 2022 performance.
  • Management maintains their guidance of +15% revenue growth YoY in 2022, but admits post-2022 top-line growth will not match the levels seen during Covid period (2020-21).

EGCO: Clean Energy Transition to Relegate ESG Concerns

By Pi Research

  • The analyst meeting came out in a positive tone.The solid 2022 earnings outlook, decent dividend yield and lowering ESG concerns from transition to clean energy should support the stock performance.
  • Expect 2Q recurring profit to remain weak and recover thereafter, following seasonality of Paju ES, (49% stake, 1.8GWe).
  • The 2022 outlook looks solid from normalizing power plant operation (recovering demand)after COVID1-19 impact. Also,we see upside from new project acquisition as the company target to add 1.0GWe to portfolio

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May 25
0

Thailand: TTW Pcl, Bangchak Corporation, Global Green Chemicals and more

By | Daily Briefs, Thailand

In today’s briefing:

  • TTW: Bleak 2022 Outlook and Recovery Thereafter
  • BCP: Solid Refinery, E&P Performance to Drive 2Q22-2022 Earnings
  • GGC: Muted 2H22 Growth Expectations

TTW: Bleak 2022 Outlook and Recovery Thereafter

By Pi Research

  • We downgrade the rating to HOLD from BUY and revise down the target price by 22% to Bt11.70 due to weak earnings outlook from low tap water demand on account 
  • 1Q22 net profit dropped to Bt613m (-13% YoY, -1% QoQ), a 4-year low. The result came out lower than our expectation.
  • The YoY earnings drop was due to decline in gross margin, higher SG&A to sales and lower share of profit from CKP.Meanwhile, revenue dropped 4% YoY dragged by lower sales 

BCP: Solid Refinery, E&P Performance to Drive 2Q22-2022 Earnings

By Pi Research

  • The analyst meeting came out in a positive tone. We maintain the BUY call based on a target price of Bt42.0, derived using SOTP methodology, implying 1.1xPBV’23E.
  • Expect the 2Q22 recurring profit to improve both YoY and QoQ on the back of solid refinery and E&P business operations.
  • The bright refinery performance should continue to excel in 2Q22 underpinned by higher GRM and full refinery utilization.

GGC: Muted 2H22 Growth Expectations

By Pi Research

  • Last week analyst meeting came out in a negative tone.Maintain HOLD rating with a new TP of Bt13.00(down 9% from previous TP) based on 1.27xPBV’22E which is close to ASIA 
  • We foresee earnings momentum to slowdown QoQ in 2Q22,pressure by change to B5 biodiesel policy,along with seasonality effect will hurt biodiesel demand despite lockdown easing, but should be mildly cushion
  • Meanwhile, FA demand in 2Q22 should remain stable backed by growing consumption of personal care products and rising prices for substitute products

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