Category

Thailand

May 11
0

Thailand: Tisco Financial Group, Origin Property and more

By | Daily Briefs, Thailand

In today’s briefing:

  • TISCO: Quality Growth with a High Dividend Payment
  • ORI: 1Q22 Earnings Will Drop YoY and QoQ

TISCO: Quality Growth with a High Dividend Payment

By Pi Research

  • We initiate coverage of TISCO with a BUY rating and a target price of Bt106. Our valuation is derived from a Gordon growth model (ROE 17.5%, growth 2%),implying 2.0x PBV’22E
  • Moderate net profit growth at 6% CAGR in 2022-24 on a potential reduction in credit cost and higher NIM
  • Loans will likely pick up in 2022 with a focus on high-yield loans.  Resilient asset quality and high loan loss reserves against uncertainties

ORI: 1Q22 Earnings Will Drop YoY and QoQ

By Pi Research

  • We maintain BUY with a new TP of Bt13.00 (previous at Bt13.70), based on 9.8xPE’22E, 5% discount from its 5 years trading average.We have positive view to its 2022 outlook 
  • We expect  1Q22 net profit at Bt723 m (-12%YoY,-10%QoQ), pressured by 1)  Lower revenue recognition from real estate sales to Bt 3.15 bn (-9%YoY) 2) loss contribution from equity income 
  • Strong 1Q22 presales imply strong earnings momentum. Strong backlog and new project launch will support 2022 earning

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May 10
0

Thailand: Ngern Tid Lor, Global Power Synergy Company Ltd, Quality Houses, Chularat Hospital and more

By | Daily Briefs, Thailand

In today’s briefing:

  • Ngern Tid Lor IPO Lock-Up – A US$660m Overhang. Selldown Is a Question of When, Not If.
  • GPSC: 1Q22 Earnings Hit by Low SPP Margin
  • QH: 1Q22 Earnings Will Grow YoY and QoQ
  • CHG: 1Q22 Earnings to Hold up Strong Amid Surged COVID

Ngern Tid Lor IPO Lock-Up – A US$660m Overhang. Selldown Is a Question of When, Not If.

By Sumeet Singh

  • Ngern Tid Lor (NTL), a financial service provider based in Thailand, raised around US$1bn in its Thailand IPO in May 2021.
  • NTL provides hire purchase loans for motorcycles and cars, along with new and used trucks. It also provides insurance brokerage services through its branches for non-life and life insurance. 
  • The lock-up on its two main shareholders will expire today.

GPSC: 1Q22 Earnings Hit by Low SPP Margin

By Pi Research

  • GPSC reported 1Q22 net profit of Bt313m (-84%YoY, -73% QoQ),an all time low. The result came out lower than our expectation, mainly dragged by the slump in SPP margins due 
  • The gross profit margin in 1Q22 fall to an all time low of 3%,compared to 20% in 1Q21 and 8% in 4Q21, following the rise in natural gas fuel cost
  • We turn negative on GPSC 2022 earnings outlook,the SPP margins are expected to remain under pressure in 1H22 and gradually pick up 3Q22 onwards as the fuel price begins normalizing.

QH: 1Q22 Earnings Will Grow YoY and QoQ

By Pi Research

  • Maintain BUY rating with target price of Bt2.66 based on 11.8xPE’2022E, its five-years trading average. We are positive to its 2022 outlook and beyond backed by 6 new projects launch 
  • We expect 1Q22 net profit at Bt535 m(+24%YoY, +8.4%QoQ),driven by higher revenue recognition from real estate sales at Bt 2.08 bn(+11.3%YoY) and higher equity income recognition at Bt403 m (+4.2%YoY,23.4%QoQ).
  • High-End low-rise project launch will support 1Q22 earnings to grow YoY.

CHG: 1Q22 Earnings to Hold up Strong Amid Surged COVID

By Pi Research

  • Reiterate HOLD rating with a TP of B3.90, derived from 15xPE’22E, which is close to -2SD of 10-years trading mean. Although 22E earnings on a downhill path
  • We estimate 1Q22E earnings to be the peak quarter at Bt1.3bn (+418%YoY,-28%QoQ) underpin by YoY growth in COVID-revenue, but QoQ fall from weaker EBIT margin.
  • We believe earnings momentum to slow down in 2Q22, pressured by lower COVID-19 contribution, as a result of lower infection patients and stopped RT-PCR requirement.

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May 07
0

Thailand: Bangkok Bank Public, Bangkok Chain Hospital, Erawan Group, Home Product Center, Land & Houses PCL and more

By | Daily Briefs, Thailand

In today’s briefing:

  • BBL: Growth Momentum Intact Despite Uncertainties
  • BCH: Solid Start Expected in 1Q22
  • ERW: Spike in International Tourists Will Speed up the Recovery
  • HMPRO: Unexciting Short-Term Earnings
  • LH: 1Q22 Earnings Will Grow YoY

BBL: Growth Momentum Intact Despite Uncertainties

By Pi Research

  • Maintain our BUY call with a lower target price of Bt159 (from Bt162) reflecting an earnings downgrade.Our BUY call reflects steady earnings growth,a resilient balance sheet, and an undemanding valuation.
  • Management maintained its 2022 financial targets and affirmed that the bank had solid fundamentals against uncertainties ahead.
  • Given the elevated volatility in the capital market ahead, we reduced our net profit projections by 4-5% for 2022-24 to reflect weaker non-interest income growth.

BCH: Solid Start Expected in 1Q22

By Pi Research

  • Reiterate HOLD rating with a TP of B21.00 derived from 14.36xPE’22E, which is close to -2SD of 3-years trailing average.Despite significant drop in 2022E earnings, we recommend a trading approach 
  • We estimate 1Q22E earnings to be the peak quarter at Bt2.3bn (+613%YoY,-7%QoQ), supported by YoY rise in COVID-revenue, but QoQ decline by margin erosion.
  • We foresee earnings momentum to weaken in 2Q22, underscored by lower COVID-19 contribution, resulting from falling infection patients and stopped RT-PCR requirement.

ERW: Spike in International Tourists Will Speed up the Recovery

By Pi Research

  • We upgrade to BUY rating from SELL rating and raise TP by +75% to Bt4.2 derived from DCF valuation (WACC=7% & Terminal growth= 2%) implying 10% discount to 23.1xPE’23. 
  • We expect ERW to post net loss of Bt296m  against loss of Bt492m in 1Q21 and Bt246 in 4Q21 despite strong  revenue growth.
  • Strong revenue growth is underpinned by the growth in domestic and international tourism due to the introduction of Test and go scheme and ‘Rao Tiew Duay Kan phase-4’ in 1Q22

HMPRO: Unexciting Short-Term Earnings

By Pi Research

  • Yesterday analyst meeting came out with a neutral tone. We reiterate our BUY rating for HMPRO with a target price of Bt17.0, which is derived from 35xPE’22E, a 40% premium 
  • In 1Q22, HMPRO’s SSSG was at 3.1% and GPM expanded by 26bps,which is in-line with our assumption and management targets (SSSG close to Thailand GDP growth and GPM +20bps YoY).
  • We expect 2Q22 earnings to continue to grow YoY and flat QoQ supported by demand for air conditioner and promotional activities(Homepro Super Expo)together with restoring consumer confidence following an increase

LH: 1Q22 Earnings Will Grow YoY

By Pi Research

  • Maintain our BUY rating with  a  TP of Bt11.20, derived from SOTP and implies 13.4xPE’22E, +0.5SD from its five years trading average. Our rating reflects strong recovery in 2022 performance 
  • We expect  1Q22 net profit to grow YoY at Bt1.94 bn(+11%YoY, -3.6%QoQ), driven by higher revenue recognition from real estate business at Bt 7.7 bn (+8.1%YoY) and higher equity income
  • New projects Launch to support  1Q22. Earnings momentum will continue in remaining quarters.

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May 06
0

Thailand: CP FOODS, One Enterprise Public Co Ltd, Central Retail Corp Ltd and more

By | Daily Briefs, Thailand

In today’s briefing:

  • CP Food (CPF TB): Vietnamese Ops To List On HCM Exchange
  • ONEE: Expect Earnings to Grow YoY and QoQ in 1Q22
  • CRC: Expect Strong Earnings Growth YoY in 1Q22

CP Food (CPF TB): Vietnamese Ops To List On HCM Exchange

By David Blennerhassett

  • CP Vietnam (CPV), an 82%-held unlisted subsidiary of CP FOODS (CPF TB) (CPF), has applied for a listing on the Ho Chi Minh Stock Exchange
  • CPV, an integrated agro-industrial and food business play in Vietnam, generated Bt111.1bn of sales in FY21, accounting for 21.7% of CPF’s revenue.
  • CPV forms part of Cp Pokphand (43 HK) which was privatised in January this year. 

ONEE: Expect Earnings to Grow YoY and QoQ in 1Q22

By Pi Research

  • We anticipate channel ONE average all day rating to climb back to top-5 tier channel by 2H22after fell down to no.7 in 1Q22.A recovery in rating will instantly benefit group 
  • We expect the company to report 1Q22 net profit at Bt219m (+13%YoY +7%QoQ), the highest level in the past three quarter.
  • NEE still hold strong position in the digital TV industry with high potential growth of contents distribution via online platforms, other businesses that started to contribute great portion of profit

CRC: Expect Strong Earnings Growth YoY in 1Q22

By Pi Research

  • We reiterate our BUY rating for CRC with a target price of Bt43.0, based on DCF (WACC of 8.2% and TG of 2%), implying 35xPE’23E, close to Thai commerce sector.
  • We expect CRC to report 1Q22 net profit at Bt1.2bn (+208%YoY, -48%QoQ).
  • YoY growth will be supported by a recovery in sales from fashion business both Thailand and Italy, a solid demand recovery from tourism related parties, and government stimulus 

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May 05
0

Thailand: JMT Network Services and more

By | Daily Briefs, Thailand

In today’s briefing:

  • SET50 Index Rebalance Preview: +JMT, JMART, BJC / -RATCH, STGT, IRPC

SET50 Index Rebalance Preview: +JMT, JMART, BJC / -RATCH, STGT, IRPC

By Brian Freitas

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May 04
0

Thailand: Siam Cement and more

By | Daily Briefs, Thailand

In today’s briefing:

  • SCC: SCGC’s Spin-Off Moves a Step Closer

SCC: SCGC’s Spin-Off Moves a Step Closer

By Pi Securities PCL, Thailand

  • Maintain BUY rating with a TP of Bt445.00, based on 13.7xPE’22E, which is close to its 10-years trading mean.
  • Unlock value potential through SCGCs IPO, citing a stronger position in PE/PP/PVC, fuel by solid olefins demand in Vietnam and Indonesia, increasing HVA products and Vinyl.
  • LSP project is on planned at 93% completion, which is expected to COD in 1H23. We view the new capacity to come into operation in times of better petrochemical outlook.

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Apr 30
0

Thailand: True Corp Pcl and more

By | Daily Briefs, Thailand

In today’s briefing:

  • True/DTAC: Merger Delays As NBTC Board Revamped

True/DTAC: Merger Delays As NBTC Board Revamped

By David Blennerhassett

  • The newly appointed board of Thailand’s NBTC has set up four subcommittees to study the planned merger of True Corp Pcl (TRUE TB)and Total Access Communication (DTAC TB).
  • Previously NBTC was expected to conclude its vetting by the 15 May. That is now unlikely to occur. 
  • In letters to the NBTC, True insisted the DTAC merger must not be delayed from the expected mid-June completion timetable. NBTC is, appropriately, investigating the merger on its own terms.

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Apr 29
0

Thailand: PTT E&P and more

By | Daily Briefs, Thailand

In today’s briefing:

  • PTTEP: Hedging Loss Dragged 1Q22 Net Profit

PTTEP: Hedging Loss Dragged 1Q22 Net Profit

By Pi Securities PCL, Thailand

  • PTTEP reported 1Q22 net profit of Bt10.5bn(-9.0%YoY, Flat QoQ).Despite significant growth in sales volume and product selling price, the net profit was dragged by a higher hedging loss of US$240m. 
  • Excluding extraordinary items, the recurring profit stood at Bt18.9bn (+113% YoY, +11% QoQ). YoY surge was underpinned  by a 12% sales volume and 27% average product selling price (ASP) growth.
  • Positive 2Q22 outlook as we expect the net profit to grow both YoY and QoQ,The gas production commencement from G1/61 and G2/61 projects(Thailand)should aid in a 10% QoQ sales growth. 

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Apr 28
0

Thailand: Plan B Media and more

By | Daily Briefs, Thailand

In today’s briefing:

  • PLANB: Solid Performance for OOH Business Throughout 2022

PLANB: Solid Performance for OOH Business Throughout 2022

By Pi Securities PCL, Thailand

  • We expect the company’s earnings to expand YoY in every quarter of 2022 which will be supported by strong recovery in a media revenue together with solid operating margin
  • Bt250m per year after the asset acquisition in 2021. •Expect the company to report net profit in 1Q22 at Bt90m (+142%YoY -41%QoQ) YoY expansion will be due to a 20% 
  • Media revenue is expected to grow 31%CAGR in 2022-23E, driven by revenue recognition of new media capacity in digital, static segments (mainly from Aqua), and, retail media in 7-eleven stores

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Apr 27
0

Thailand: Siam Wellness Group, SCG Packaging Public Company Limited and more

By | Daily Briefs, Thailand

In today’s briefing:

  • SPA: Keep Eye on Tourism Recovery Ahead of Soft 1Q22
  • Scg Packaging (SCGP.BK) – 1 Q22 Inline; Risk Bias Positive

SPA: Keep Eye on Tourism Recovery Ahead of Soft 1Q22

By Pi Securities PCL, Thailand

  • Maintain BUY rating with a new TP of Bt9.60 (revise up by 16%) as we roll forward valuation base to 30xPE’23E which is -1SD of 5-years trading mean. 
  • We expect 1Q22E operation to be the bottom quarter at a net loss of Bt55m,ahead of earnings modestly gearing up in 2Q22 and onwards, on the back of tourism recovery.
  • In our view, recovery trend to continue into 2H22, based on full reopening country for foreign tourists post COVID crisis, with upside risk from new branches and products. 

Scg Packaging (SCGP.BK) – 1 Q22 Inline; Risk Bias Positive

By Maybank Research

  • Soft result priced-in: Reiterate Buy
  • 1Q22 net profit lacklustre but expected
  • Maintain capex THB20b; revenue > THB140b
  • Maintain earnings forecast; strong growth ahead

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