Category

Thailand

Mar 17
0

Thailand: Bangkok Chain Hospital, S Hotels & Resorts PCL and more

By | Daily Briefs, Thailand

In today’s briefing:

  • BCH: Good Value but Limited Room for Growth
  • SHR: Expect Rapid Recovery in 2022

BCH: Good Value but Limited Room for Growth

By Pi Securities PCL, Thailand

  • Maintain HOLD rating with a TP of B21.00, based on 14.36xPE’22E, which is close to -2SD of 3-years trading average. Despite expected 43% drop in 22E earnings,rising Omicron cases coupled 
  • Its 4Q21 earnings was at Bt2.5bn (+791% YoY,-14%QoQ), suppressed QoQ upon weak  revenue growth, caused by lower Covid-related revenue.
  • BCH’s 2021 earnings was at Bt6.8bn, grew 454%YoY, attributed to solid revenue growth (+139%YoY) and margin expansion (+17ppts), upon higher Covid-contribution.

SHR: Expect Rapid Recovery in 2022

By Pi Securities PCL, Thailand

  • We maintain BUY rating and raise TP by +25% to Bt4.50 derived from 1x PBV’22E, to reflect better outlook post-COVDID crisis.
  • About 98%of its hotel properties have already resumed operation by the late last year.This along with complete opening up of international borders will be the key earnings drivers for 2022 
  • Maldives and Thailand international demand has shown growing trend since 2Q21 and been in continuing growth in 1Q22 following reopening countries especially in UK and Maldives.We expect strong earnings recovery 

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Mar 15
0

Thailand: Com7 PCL, Krung Thai Bank Pub and more

By | Daily Briefs, Thailand

In today’s briefing:

  • COM7: Dilution Effect Have Significant Impact to 22E EPS Growth
  • KTB: Growth Normalization Is Underway

COM7: Dilution Effect Have Significant Impact to 22E EPS Growth

By Pi Securities PCL, Thailand

  • We downgrade to HOLD rating with a new TP of Bt38.75 derived from 28.9xPE’22E (-0.5SD of 5-Yr trading average)to factor in negative impact from stock dividend on 22E EPS growth
  • COM7 announced annual cash dividend of Bt1.00 and stock dividend (Bt0.25), XD date on 11 Mar.
  • We believe the dilution effect will have a negative impact on the company’s shareholders.Recurring EPS growth should drop to-38.4%YoYin 22E,down from 23.2%YoYpre-dilution,while dividend yield will also be halved to 1.2%.

KTB: Growth Normalization Is Underway

By Pi Securities PCL, Thailand

  • Maintain HOLD with a target price of Bt15.00. Our HOLD call reflects KTB’s slowing growth ahead and limited upside gain. Yet, a dividend yield of 4.5-4.8% for 2022-23 remains attractive.
  • Management guided loan growth to moderate to 3-4% YoY in 2022. Asset quality remains manageable.
  • Government expenditure will bolster Thailand’s economy in 2022. But growth potential may weaken than expected on potential impacts from higher energy prices and geopolitical uncertainties.

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Mar 12
0

Thailand: Thai Rayon Public Co Ltd, MK Restaurants Group and more

By | Daily Briefs, Thailand

In today’s briefing:

  • Thai Rayon (TR TB): IFA Rejects Surya Kiran’s Offer?
  • M: Positive Outlook for 2022-24 Earnings

Thai Rayon (TR TB): IFA Rejects Surya Kiran’s Offer?

By David Blennerhassett

  • After taking into account the IFA opinion, the directors of textile-play Thai Rayon Public Co Ltd (TR TB) unanimously reject Surya Kiran’s Offer. 
  • Surya Kiran is offering THB 50/share for the 79.33% of shares out in Thai Rayon it does not own. The Offer Price will not be increased. 
  • The Offer is currently open for acceptance and will close on the 25 March.

M: Positive Outlook for 2022-24 Earnings

By Pi Securities PCL, Thailand

  • Yesterday analyst meeting came out with a positive tone. We reiterate our BUY rating for M with a target price of Bt61.0 based on 25xPE’22E,Asia ex-Japan consumer staple sector average
  • Management target same-stores-sales-growth (SSSG) at above 30% in 2022 from -15% in 2021.SSSG has strongly recovered at +15% in Jan-Feb 2022 supported by resuming dine-in services together with restoring consumer 
  • After resuming dine-in services,GPM recovered to 66.9% in 4Q21.We believe GPM to increase to 66% in 2022E from 64.1% in 2021 supported by a higher revenue contribution from dine-in service

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Mar 11
0

Thailand: Rajthanee Hospital, Ratch Group PCL, Com7 PCL, Ichitan Group, Index Livingmall PCL and more

By | Daily Briefs, Thailand

In today’s briefing:

  • RJH: 4Q21 Earnings Grew YoY but Drop QoQ
  • RATCH: Minor Dilution Impact from Capital Raising
  • COM7: 5G to Drive Strong Earnings Growth in 2022 and Beyond
  • ICHI: Strong Earnings Momentum with Attractive Dividend Yield
  • ILM: Positive Earnings Outlook in 2022-24

RJH: 4Q21 Earnings Grew YoY but Drop QoQ

By Pi Securities PCL, Thailand

  • Maintain HOLD rating with a TP of Bt33.50, based on 19.14xPE’22E,which is pegged to -1SD of 3-years trading mean.Despite drastic drop in 22E profit, its strategic location, combined with undemanding 
  • Its 4Q21 net profit was at Bt283m (+96%YoY, -42%QoQ), given weak QoQ revenue growth, and margin contraction due to lowered Covid-19 related contribution.
  • RJH’s 2021 earnings was at Bt1.01bn, implying +145% YoY, mainly attributed to higher contribution from Covid-related services.

RATCH: Minor Dilution Impact from Capital Raising

By Pi Securities PCL, Thailand

  • Last week analyst meeting came out in a positive tone. We maintain the BUY call based on target price of Bt48.0 derived using SOTP methodology, implying 9.0xPE’22E.
  • The 1Q22 earnings is expected to soften QoQ due to seasonal weak contribution from Hydro projects, RAC (Australia), and weak domestic SPP margins. The earnings should pick up 2Q22 onwards
  • The 2022 net profit growth will be supported by 1)full year profit recognition of 377MWe projects added in 2021 (Yandin&collector wind farm) and 2) 150MWe new project COD in 2022.

COM7: 5G to Drive Strong Earnings Growth in 2022 and Beyond

By Pi Securities PCL, Thailand

  • We upgrade COM7 to BUY and raise TP by 34% to Bt92.50 derived from 34.5xPE’22E (+0.25SD of 5-Yr trading average).Our rating reflects a positive outlook toward its strong potential growth 
  • We downgrade our target PE to 34.5xPE’22 (+0.25SD) from 39.0xPE’22 (+1SD) previously to reflect declining earnings momentum. We believe recurring earnings growth at CAGR of 45% over past two years 
  • We expect strong earnings growth in 2022 at +23% driven by strong iPhone 14 sales due to growing 5G device penetration.

ICHI: Strong Earnings Momentum with Attractive Dividend Yield

By Pi Securities PCL, Thailand

  • We reiterate our BUY rating for ICHI with a target price of Bt13.0 based on 25xPE’22E, the five-years average trading range and close to Thailand consumer staples.
  • We expect strong earnings momentum to continue to grow both YoY and QoQ in 1Q22 and continue in 2Q22 from high season quarter.Currently,ICHI trading at 20xPE’22E cheaper than its five-years
  • We expect earnings to grow at CAGR of11%in the next three year to reach Bt742m by 2024 supported by launching new products and new markets expansion,as well as margin expansion 

ILM: Positive Earnings Outlook in 2022-24

By Pi Securities PCL, Thailand

  • Yesterday analyst meeting came out with a positive tone.We maintain BUY rating with a target price of Bt21.0, derived from 18xPE’22E,+1SD from three years average trading range or 50% discount
  • We expect earnings to grow to Bt764m in 2024E or +19%CAGR (2022-24E) from -5%CAGR(2019-21), driven by 1) solid SSSG and online sales, 2) solid recovery in rental income
  • To implement a more aggressive strategy after COVID-19, the management aims to expand 1-2 new stores per year from 2023 onwards.

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Mar 10
0

Thailand: B Grimm Power, Central Plaza Hotel, Minor International, TOA Paint (Thailand) and more

By | Daily Briefs, Thailand

In today’s briefing:

  • BGRIM: Rising Gas Cost to Drag SPP Margins in 1H22
  • Central Plaza Hotel (CENTEL.BK) – Turning Profitable
  • Minor International (MINT.BK) – Strong Fy22 E Turnaround
  • TOA: Squeeze Margin Pressured 1H22 Earnings

BGRIM: Rising Gas Cost to Drag SPP Margins in 1H22

By Pi Securities PCL, Thailand

  • The analyst meeting came out in a negative tone, as the projected rise in gas cost will pressure the SPP margins and drag the earnings in 1H22.  
  • We expect 1Q22 recurring profit to soften due to continued rise of fuel cost. The earnings should bottom out in 1H22 and pick up gradually 3Q22 onwards.
  • The SPP gas price has rose to Bt336/ MMBTU in 4Q21 compared to Bt268/MMBTU in 3Q21.According to management guidance the gas prices are further expected to rise near Bt450/MMBTU level

Central Plaza Hotel (CENTEL.BK) – Turning Profitable

By Maybank Research

  • U/G to BUY on expected aggressive expansion
  • SSSG+12%, restaurant sales only 6% below FY19
  • RevPar to double YoY in FY22E
  • Key risks are Ukraine conflict and rising food costs

Minor International (MINT.BK) – Strong Fy22 E Turnaround

By Maybank Research

  • Upgrade to BUY on hotel and restaurant rebounds
  • Prominent hotel recovery in Europe with risks
  • Positive same-store sales, with no more lockdowns
  • Key risks are Covid and rising food costs

TOA: Squeeze Margin Pressured 1H22 Earnings

By Pi Securities PCL, Thailand

  • Yesterday analyst meeting came out with a negative tone.We expect TOA net profit in 1H22to weaken YoY due to an increase in raw material cost in spite of upward selling 
  • We expect earnings drop both QoQ and YoY in 1Q22 caused by squeezed GPM from rising raw material cost. In contrast,revenue will be expanded YoY supported by demand for painting 
  • We revised down 2022-23 earnings by 3-7% in 2022-23E to factor in further decrease in gross profit margin caused by a rise in material cost following spike in oil price.

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Mar 07
0

Thailand: Bangkok Bank Public and more

By | Daily Briefs, Thailand

In today’s briefing:

  • BBL/KBANK: Time for a Bounce

BBL/KBANK: Time for a Bounce

By Brian Freitas

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Mar 05
0

Thailand: Electricity Generating and more

By | Daily Briefs, Thailand

In today’s briefing:

  • EGCO: Undemanding Valuation and Bright 2022 Outlook

EGCO: Undemanding Valuation and Bright 2022 Outlook

By Pi Securities PCL, Thailand

  • Yesterday analyst meeting came out in a positive tone.We maintain the BUY call based on a target price of Bt220.0 derived using DCF methodology (WACC 9.8%, TG 1%), implying 11.0xPE’22E.
  • Expect the 1Q22 recurring profit to improve YoY and QoQ on the back of profit recognition from investments in Linden, APEX (USA, 2Q-4Q21). Moreover, seasonal better electricity sales should offset
  • The company maintains the CAPEX plan of Bt30bn for 2022, targeting new renewable energy project additions. We expect EGCO to add around 1,000MW to portfolio in 2022 

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Mar 04
0

Thailand: Ichitan Group and more

By | Daily Briefs, Thailand

In today’s briefing:

  • ICHI: Bright Outlook in 2022 and Beyond

ICHI: Bright Outlook in 2022 and Beyond

By Pi Securities PCL, Thailand

  • Analyst meeting came out with a positive tone. we expect 2022-24E earnings to continue to grow at 19%CAGR supported by new products launch and market expansion in SEA, especially 
  • Both product and market expansion will be key growth drivers in 2022.
  • Cut 2022-24E forecast  to reflect the sluggish economy.  Announce annual DPS of Bt0.50 (XD on 5 May).

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Mar 03
0

Thailand: Central Plaza Hotel, Hana Microelectronics, Home Product Center, Chularat Hospital and more

By | Daily Briefs, Thailand

In today’s briefing:

  • CENTEL: Brighter Outlook in 2022 and Beyond
  • HANA: 2022 Net Profit to Grow Despite Additional Costs
  • HMPRO: Store Expansion to Support 2022-23 Growth
  • CHG: Gradually Back to Organic Growth

CENTEL: Brighter Outlook in 2022 and Beyond

By Pi Securities PCL, Thailand

  • Analyst meeting came out with a positive tone. We expect 2022 EBITDA to grow by 78%YoY supported by strong recovery in hotel businesses especially in Maldives and Dubai.We maintain BUY
  • 4Q21 EBITDA reached the highest level since 1Q20 at Bt977m (+113%YoY, +307%QoQ) backed by strong recovery of hotel performance especially in Maldives and Dubai.
  • The company plans to open39 new hotels with 8,038 rooms by 2025 and 200-250 new food stores of existing brands and JV brands in 2022 which could support earnings momentum

HANA: 2022 Net Profit to Grow Despite Additional Costs

By Pi Securities PCL, Thailand

  • Analyst meeting came out with negative tone. The company’s Korean SiC segment will continue to incur costs throughout 2022.However, the 45% tumble in share price since Nov’21 factored in negative 
  • We expect 22E core profit will remain flat YoY at Bt2.3bn. Additional costs and microchip shortages will offset the growth from capacity expansion.
  • Bleak outlook until 3Q22. Additional costs will drag core earnings until 3Q22. Current share prices are cheap and provide opportunity for share accumulation.

HMPRO: Store Expansion to Support 2022-23 Growth

By Pi Securities PCL, Thailand

  • Yesterday analyst meeting came out with a positive tone. We reiterate our BUY rating for HMPRO with a target price of Bt17.0(+5%from previous TP),which is derived from 35xPE’22E, a 40%
  • In 2022, HMPRO plans to open 6 stores comprise of one store for Homepro large store format and 5 stores for Mega home and one HMPRO’s store re-location.
  • We believe that SSSG continues to positive at 5%in 2022 and 4% in 2023 supported by new products launch together with promotional activities such as Homepro Day, Homepro Super Expro

CHG: Gradually Back to Organic Growth

By Pi Securities PCL, Thailand

  • Downgrade to HOLD with a TP of Bt3.90,based on 15xPE’22E, which is close to -2SD of its 10-years trailing mean. In our view,the rating does not warrant a premium valuation
  • Its 4Q21 net profit figure was at Bt1.8bn, (+615%YoY, +16% QoQ), YoY growth is backed by margin expansion from Covid-related revenue and efficient cost control.
  • CHG’s 2021 net profit was at B4.2bn (+380YoY) thanks to solid revenue growth (+116%YoY) and wider margin (+18ppts), helped by Covid-related services.

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Mar 02
0

Thailand: Total Access Communication and more

By | Daily Briefs, Thailand

In today’s briefing:

  • NBTC To Decide On True/DTAC Merger

NBTC To Decide On True/DTAC Merger

By David Blennerhassett

  • Thailand’s Trade Competition Commission said that only the National Broadcasting and Telecommunications Commission has the authority to block the True Corp (TRUE TB) / Total Access Communication (DTAC TB) merger.
  • At issue, the government appears to be stonewalling the transition of the NBTC board, potentially abetting the merger. 
  • Both True and DTAC are trading through their VTO terms, ignoring dividends.

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