Thailand

• We reiterate our BUY rating with a target price of Bt174. Our BUY call reflects (1) steady growth ahead from improving economic recovery; (2) adequate reserves against new NPLs
• Net profit will likely rise 6% YoY (+14% QoQ) in 1Q22 given higher net interest income from elevated loans and an improvement in cost to income ratio.
• We expect minimal impacts from S&P Global Rating downgrade from “BBB+” to “BBB”. 

• Riding on COVID-driven demand boom, Sri Trang Gloves (Thailand) Public Company Limited (STGT TB) reported record high performance in 2021, which is not likely to continue in near-term.
• However, post pandemic, gloves demand is expected to improve on the back of increased glove usage from emerging markets with low gloves consumption per capita and heightened hygiene awareness.
• STGT shares have corrected 15% thus far in this year, providing a good buy on dip opportunity. Shares can be considered for the long-haul.

• We initiate coverage of KKP with a BUY rating and a target price of Bt79. Our valuation is derived from a Gordon growth model (ROE 13.5%, growth 2%),implying 1.2x PBV’22E
• Steady growth ahead on continued lending growth and a potential reduction in credit costs
• Resilient asset quality and high loan loss reserves against NPLs

• We reiterate our BUY rating for SAPPE with a target price of Bt32.0 based on 22xPE’22E,close to its five-years average trading range and average of Asia-ex Japan consumer staple sector
• SAPPE is beverage exporter with 65% of sales from oversea. In 2021, logistic cost surged to Bt341m (+251%YoY) as it provides a freight contract for distributors and pass most
• Average container freight decreased to US$8800 per 40ft box in March 2022 from it peak at US$10,000 per 40ft box in Sep 2021. We believe freight rate to continues 

• ACommerce Group (ACOM TB) is looking to raise about US$200m in its upcoming Thailand IPO.
• Acommerce is an ecommerce enabler providing end-to-end and ala carte ecommerce solutions for brands in Southeast Asia (SEA). 
• Acommerce has been a key beneficiary of COVID, however, has been recording unexpectedly weak margins, suggesting that it does a lot of logistical heavy lifting. 

• Higher EPS and TP but still a HOLD
• Targets 10% card spending growth, 7% personal loan growth and THB11.5b title loans
• Better card spending but weak loan growth in 1Q22
• Raised FY22-23F earnings due to lower credit cost

• Maintain our BUY call with a target price of Bt162. Our valuation is derived from the Gordon Growth Model (ROE 6.6%,growth 2%), implying 0.6x PBV’22E, -1SD to its five-year means. 
• With its focus on corporate and international loans, BBL will likely suffer fewer impacts when compared with its competitor from elevated household debts and a conflict between Russia and Ukraine.
• Net profit will continue to rise further in 2022-23, supported by solid fundamentals and an improvement in economic activity.

• The Information Memorandum is out regarding the True Corp Pcl (TRUE TB) / Total Access Communication (DTAC TB) merger.
• The shareholder meetings for both companies will be held on the 4 April, with a tentative listing date of the NewCo late September.
• The IFAs for both companies are of the opinion that shareholders should approve the Amalgamation. 

• Maintain BUY rating with a TP of Bt8.30, based on DCF (WACC of 9.8% and Terminal Growth of 3.5%), implying 25.9xPE’23. We see attractive play on reopening, upon the progress 
• Its 4Q21 net loss was at Bt46m, which continued for 7 consecutive quarters, attributed mainly to its operation below EBIT breakeven level.
• SPA’s 2021 net loss was at  Bt287m, pressured by weak revenue growth, which drop 61%YoY upon brief closure of spas and massages in Jan 21 and end of Apr-Sep 21.

• New TP of THB13, Top Pick LH (BUY)
• Residential division has yet to fully recover
• Expect lower gains from sale Mention this in the textof industrial properties
• Improvement in commercial property/hospitality unit

• Keep Buy, new TP of THB10.8
• Healthy Jan-Feb 2022 presales
• Major launches planned for 3Q22
• Expect solid pick-up in non-core businesses

We keep our Buy rating on LH as we expect all its businesses to stage significant rebounds this year, and for its attractive 6.6% FY22E dividend yield. We forecast FY22 earnings to grow 22% YoY and FY23 by another 10% YoY. 2H22 is likely to be strong with the bulk of launches in 3Q while overall performance should peak in the 4Q high season. Risks to our estimates include the macro outlook, rising inflation given a surge in energy prices, labour shortages and possible delays in launch/completion of projects. Our SOP-based TP rises 2% to THB10.80, after we fine-tune our earnings forecasts and factor in asset appreciation.

• Maintain HOLD, lower TP to THB24; Top Pick LH (BUY)
• Record-high FY21 revenue, earnings and margins
• Unexciting FY22E earnings due to high base
• Pedestrian earnings outlook for FY22-24E

• The Thai government plans to scrap pre-travel COVID-19 to boost tourism, and visitors will only be tested on arrival in Thailand – expect to have more tourists in Thailand.
• Q4 2021 revenue started to bounce higher YoY although still 50% of pre-COVID level but shows some promise. 
• Platinum Group PCL (PLAT TB)  share price went up by 24%within a year, with a 0.7x PBR to 1.02x PBR. Still early but why wait longer? 

• 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.

• 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 

• 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%.

• 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.

• 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.

• 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