Category

Thailand

Jan 29
0

Thailand: Bangkok Dusit Medical Services, VGI PCL and more

By | Daily Briefs, Thailand

In today’s briefing:

  • Bangkok Dusit Medical (BDMS TB): Thailand Reopening+ Less Severe Omicron= Continued Business Revival
  • VGI: Positive for Short-Term Outlook While Long-Term Remain Promising

Bangkok Dusit Medical (BDMS TB): Thailand Reopening+ Less Severe Omicron= Continued Business Revival

By Tina Banerjee

  • Bangkok Dusit Medical Services (BDMS TB) should benefit from Thailand’s resumption of quarantine-free travel from February 1. International patients contributed 30% of total revenue of BDMS in pre-pandemic period.
  • With the less severe Omicron variant, BDMS non-COVID revenue is expected to recover. Its revenue and net profit through first nine months of 2021 are still lower than pre-pandemic levels.
  • Digitalization initiatives of BDMS will be a stable source of income and long-term growth driver for the company, contributing 10–15% of total revenue in next five years.

VGI: Positive for Short-Term Outlook While Long-Term Remain Promising

By Research Group at Country Group Securities

  • We maintain BUY rating for VGI with the new target price of Bt6.50 (Previous TP: Bt8.10), derived from SOTP method or 50% premium to Thai media peers.  Target price downgrade 
  • Bt12.9bn from Capital raising will be utilized to pay loan repayment from JMART 15% stake investment (Bt8.2bn) and future business expansion via M&A.
  • Expect 4QFY22 earnings (Jan’22-Mar’22) to face a hiccup given Omicron virus spread in Jan’22.We anticipate the media revenue stream to retreat to 70%of the level we have seen during pre-pandemic 

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Jan 28
0

Thailand: Plan B Media, Siam Global House, Siam Cement and more

By | Daily Briefs, Thailand

In today’s briefing:

  • PLANB: Acquisition of New OOH Media Capacity Seems Worthwhile
  • GLOBAL: Expect 4Q21 Earnings to Remain Strong QoQ and YoY
  • SCC: IPO of SCGC Will Unlock Potential Growth

PLANB: Acquisition of New OOH Media Capacity Seems Worthwhile

By Research Group at Country Group Securities

  • We believe PLANB’s acquisition of media business from AQUA PCL at total cost of Bt2.9bn will create value accretive for the company as it purchases at PE multiple of 16x-18x 
  • 2022 to be harvesting period after heavy CAPEX investment in the past two years ,which also included the largest deal on Aqua’s assets.
  • Media revenue is expected to grow 35%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.

GLOBAL: Expect 4Q21 Earnings to Remain Strong QoQ and YoY

By Research Group at Country Group Securities

  • We reiterate BUY rating for GLOBAL with a lower target price of Bt27.0 (-7% from previous TP) based on 35xPE’22E, average of the Thailand home-improvement subsector
  • We expect GLOBAL to report 4Q21 net profit at Bt687m (+82%YoY, +4%QoQ), supported by (1) a solid SSSG at +15%YoY,and (2) gross profit margin expansion from a higher revenue contribution 
  • YoY decrease in gross profit margin caused by a higher revenue contribution from low margin products and an increase in marketing promotion.

SCC: IPO of SCGC Will Unlock Potential Growth

By Research Group at Country Group Securities

  • Maintain BUY rating, with a TP of Bt445, based on 10.6xPE’22E,which is Asia ex-Japan Materials Sector. The recent SCGC spin-off deal provides a catalyst path for sweet entry to accumulate
  • Unlock value potential through the SCGC spin-off, growth prospects from Vietnam & Indonesia, Vinyl, green polymer, and capture new megatrends.
  • Uphold positive on 22E outlook, upon demand recovery for both CBM and packaging units post-lockdown, along with higher chemical prices.

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Jan 26
0

Thailand: PTT Global Chemical, Quality Houses, SCG Packaging Public Company Limited, Tipco Asphalt and more

By | Daily Briefs, Thailand

In today’s briefing:

  • PTTGC: Weak Petrochemical Margins to Drag 4Q21 Performance
  • QH: 4Q21 Earnings Will Be the Peak Quarter in 2021
  • SCGP: 4Q21 Earnings Result In-Line with Expectation
  • TASCO: 4Q21 Earnings on Track to Bottom-Out

PTTGC: Weak Petrochemical Margins to Drag 4Q21 Performance

By Research Group at Country Group Securities

  • We expect PTTGC to post a weak 4Q21 net profit of Bt6.3bn (-2% YoY, -10% QoQ)
  • The QoQ drop will be resulted by softened petrochemical segment performance (Olefins  (PE),Aromatics (PX, BZ) and Performance materials (Phenol, Propylene Oxide (PO)),which will be partially offset by improved refinery segment.
  • We expect the 2022 earnings to decline significantly due to absence of one-time items (gain from divestment of GPSC shares)and weak chemical product margin.However, consolidation of Allnex(acquisition completed in 4Q21) 

QH: 4Q21 Earnings Will Be the Peak Quarter in 2021

By Research Group at Country Group Securities

  • Upgrade to BUY from HOLD rating and raise TP by 6%to Bt2.66 based on 11.8xPE’2022E, +1SD from its five-years trading average. Our rating factor in benefit from easing LTV policy
  • We expect the peak quarter profit in 4Q21 at Bt522 m (-10%YoY, +99%QoQ), driven by higher housing revenue recognition and rising equity income especially from  HMPRO
  • Core operation in 4Q21 will be backed  by secured  backlog in 3Q21 worth Bt830m

SCGP: 4Q21 Earnings Result In-Line with Expectation

By Research Group at Country Group Securities

  • Upgrade to BUY rating with a TP of Bt72, based on 30XPE’22E, which is derived from 2-years trailing average.The recent share price drawdown of 14% from its December 30 peak
  • It 4Q21 earnings were at Bt2.1bn, in-line with our projection, supported by robust revenue growth. Meanwhile, excluding extraordinary gain of Bt757m, its core profit was Bt1.4bn (-14%YoY,-2%QoQ),
  • SCGP’s 22E target revenue at Bt140bn (+6% from our forecast) as ASEAN Covid measures unwind would help support demand recovery. In tandem with multiple M&As consolidation and ramp-up organic growth.

TASCO: 4Q21 Earnings on Track to Bottom-Out

By Research Group at Country Group Securities

  • Maintain HOLD rating with a TP of Bt19.80  based on 1.9xPBV’22E, -1SD of its 3-years trailing average. Our rating factors in weak 22E outlook,erode by absence of cheap crude sources
  • Expect 4Q21 earnings at Bt650m (-18%YoY,+72%QoQ), back by revenue growth, and 271m which is to be report under the extraordinary items
  • The management affirms that the availability of heavy crude oil should persist until 1Q22. In our view,this would slightly cushion the margins impact from crude price hike,which hovers around $87/BBL 

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Jan 25
0

Thailand: G J Steel Pcl, SiS Distribution (Thailand) PCL, TMBThanachart Bank, RS PCL, Synnex Thailand and more

By | Daily Briefs, Thailand

In today’s briefing:

  • Nippon Steel’s Mandatory Offers For Thailand’s GJ Steel and G Steel
  • SIS: New Business Segments Will Drive Growth In Earnings and Price
  • TTB: Focusing on Quality Growth
  • RS: Rising for Sustainable Growth in 2022
  • SYNEX: 4Q21 Net Profit Will Be an All-Time High

Nippon Steel’s Mandatory Offers For Thailand’s GJ Steel and G Steel

By David Blennerhassett

SIS: New Business Segments Will Drive Growth In Earnings and Price

By Research Group at Country Group Securities

  • Maintain BUY rating with a new TP of Bt50 (+10% from last TP) based on 19.7xPE’22 (+2.5SD historical 5-Year PE) due to positive prospects from new cloud and cybersecurity segments
  • We rerate PE target to 19.7xPE’22 from 18.1xPE’22 to factor in upside from change in market valuations. While SIS trades at 16.2xPE’22,SYNEX and COM7 trade at an average of 35.5xPE’22
  • •Expect earnings to grow 28% YoY in 22E, off the backs of new high-margin and high-demand cloud and cybersecurity segments.

TTB: Focusing on Quality Growth

By Research Group at Country Group Securities

  • We reiterate our BUY rating with a target price at Bt1.60. Our BUY call reflects (1) steady growth ahead; (2) adequate reserves against new NPLs, and (3) compelling valuation
  • The bank will concentrate its strategic efforts on improving the quality of its growth and bolstering its capital position in the face of uncertainty
  • TTB expects modest lending growth ahead in 2022 with a focus on the retail market expansion

RS: Rising for Sustainable Growth in 2022

By Research Group at Country Group Securities

  • We believe RS’s 2022E target revenue at Bt5.1bn (+31% from our 2021E forecast) is a bit optimistic given a slower-than-expected recovery in people purchasing power during post-COVID-19. However
  • Our expectation over earnings recovery in 2022E will be driven by 1.) an absence of heavy SG&A expense allocation after key product launch(Camu- C) in 2021, 2.) equity income recognition
  • Expect earnings in 4Q21 to reach bottom at Bt10m loss due to slower-than-expected recovery in MPC sales and Ads spending.

SYNEX: 4Q21 Net Profit Will Be an All-Time High

By Research Group at Country Group Securities

  • We maintain HOLD rating with a TP of Bt28.40 derived from 27.0xPE’22E, (+2S.D. ten-year average). We believe that the company’s strong expected growth in 22E is largely priced in.
  • We expect 4Q21 net profit to be Bt218mn (+12%QoQ), which is the company’s all time-high. All-time high revenue of Bt10.5bn (+19%QoQ),will be driven by strong sales of new Apple products
  • Positive earnings growth in 2022,driven by sales in gaming devices and equipment, which are high-margin products. Gaming equipment sales come from partnerships with major gaming-related companies like Nintendo, Sony (Playstation),Razer.

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Jan 24
0

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

By | Daily Briefs, Thailand

In today’s briefing:

  • Bangkok Bank – Positive Credit Turn
  • Kasikornbank (KBANK.BK) – Attractive Valuation
  • KBANK: Growth Momentum Remains Intact
  • Siam Commercial Bank (SCB.BK) – Expects Credit Cost To Decline In Fy22 E
  • SCB: Going More Digital Services

Bangkok Bank – Positive Credit Turn

By Thomas J. Monaco

  • Bangkok Bank reported 4Q21 bottom-line results of THB 6.3 bn, declining THB 591 mn (8.6%) on a linked quarter basis, driven by costs which rose THB 3.5 bn or 21.8%;
  • Outside of expenses, BBL had a pretty solid quarter with net interest income improving and provisions declining; and
  • We find that BBL’s annualized net new NPLs were negative, and that reserves likely will begin being reversed in the near-term.

Kasikornbank (KBANK.BK) – Attractive Valuation

By Maybank Research

  • Our favourite big bank
  • 4Q21 earnings beatBeat MKE or consensus? Please specify in the text our forecast by 25% due to lower credit cost QoQ
  • We expect credit cost to decline further in FY22
  • Loans under debt-relief measures down QoQ in 4Q21

KBANK: Growth Momentum Remains Intact

By Research Group at Country Group Securities

  • We reiterate our BUY rating with a target price at Bt172. Our BUY call reflects (1) steady growth ahead from improving economic recovery; (2) adequate reserves against new NPLs
  • Management forecasted Thai GDP to accelerate to 3.7% YoY in 2022 from an expected rise of 1% in 2021
  • Following the analyst meeting, we remain neutral and maintain our net profit projections for 2022-23

Siam Commercial Bank (SCB.BK) – Expects Credit Cost To Decline In Fy22 E

By Maybank Research

  • Maintain HOLD; prefer KBANK
  • 4Q21 earnings missedMention this in the text and specify who is missed against, ie, MKE or consensus. due to higher credit cost
  • SCB expects credit cost to decline materially in FY22E
  • NIM under pressure due to debt-relief programme

SCB: Going More Digital Services

By Research Group at Country Group Securities

  • Maintain BUY with a target price at Bt149. Our BUY call reflects steady earnings growth, resilient asset quality, and leadership in digital banking services
  • Digital banking services remain a focus ahead. SCB expects moderate lending growth and credit costs to likely decline in 2022.
  • SCB X will offer newly-issued shares and make a tender offer for all of SCB’s shares in 1Q22.

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Jan 22
0

Thailand: Thai Oil Pcl, Bangkok Bank Public, Bangkok Chain Hospital and more

By | Daily Briefs, Thailand

In today’s briefing:

  • TOP: Solid Refinery Margin to Drive 4Q21 Performance
  • BBL: Strong Growth Rebound and Improving Asset Quality
  • BCH: Share Price Exaggerated COVID Restrictions Easing

TOP: Solid Refinery Margin to Drive 4Q21 Performance

By Research Group at Country Group Securities

  • We expect TOP to post a solid 4Q21 net profit of Bt5.1bn (-30% YoY, +146% QoQ).
  • The growth will be supported by solid spike in GRM. which should increase to US$5.5/bbl, up from US$1.2/bbl in 4Q20 and US$1.6/bbl in 3Q21,backed by strong rise in product spreads
  • The Aromatics & LAB, and Lube base oil contribution should soften QoQ due to 25 to 50%decline in product spreads.However, overall base GIM should increase to US$7.1/bbl,(+97% YoY, +29% QoQ).

BBL: Strong Growth Rebound and Improving Asset Quality

By Research Group at Country Group Securities

  • Maintain our BUY call with a target price of Bt162. Our BUY call reflects steady earnings growth; a resilient balance sheet; and undemanding valuation.
  • Net profit in 4Q21 came in strong and in line with expectations. Net profit increased 164% YoY (-9% QoQ) thanks to higher operating income. 
  • Asset quality improved. The NPL ratio surprisingly lowered to just 3.2% in 4Q21 (2020: 3.9%).

BCH: Share Price Exaggerated COVID Restrictions Easing

By Research Group at Country Group Securities

  • Maintain HOLD rating, with a TP of Bt21, based on 23xPE’22E,which is close to -1SD of its 10-years trailing average. The 30% drop in share price from its August 21
  • Yesterday, the Centre for COVID-19 Situation decided to relax some restrictive measures including a revision to the colour-coded zoning and resuming Test&Go registration for foreign travelers starting from 1 Feb
  • Expect 4Q21 earnings at Bt1.3bn (+384%YoY,-54%QoQ), tumble by weak margin due to the Covid cases declined 69%, but partially offset by pent-up demand for core services

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Jan 20
0

Thailand: One Enterprise Public Co Ltd and more

By | Daily Briefs, Thailand

In today’s briefing:

  • ONEE: Expect Core Earnings to Hit All-Time High Level

ONEE: Expect Core Earnings to Hit All-Time High Level

By Research Group at Country Group Securities

  • We reiterate ONEE with a BUY rating, based on a new target price of Bt12.70 (previous TP:11.80)derived from 26.7xPE’22E,which is the average for the stocks in Thailand’s communication services sector
  • We expect the company to report 4Q21 net profit at Bt221m (-15%YoY +32%QoQ). Excluding deferred tax item in 4Q20, core earnings would grow 17%YoY, all-time high level.
  • Ads spending via TV look resilient relative to overall media

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Jan 19
0

Thailand: Digital Telecommunications Infrastructure Fund, Thai Foods Group Public Company Limited, Eastern Water Resources Development and Management, Origin Property and more

By | Daily Briefs, Thailand

In today’s briefing:

  • DIF: A Source of Stable and Secured Income
  • TFG: Expect Earnings Upturn from 4Q21 Onwards
  • EASTW: Expect 4Q21 Earnings to Expand YoY but Drop QoQ
  • ORI: 4Q21 Earnings Will Be the Peak Quarter in 2021

DIF: A Source of Stable and Secured Income

By Research Group at Country Group Securities

  • We initiate the coverage of DIF with a BUY rating at a target price of Bt16.50, derived from a DCF methodology (WACC=7%, g=0%), implying 1xPBV’22E.
  • Stable and secured earnings will support high dividend yield for at least the next ten years.
  • The fund’s financial performance is secured by long-term contracts with high switching costs while it has not been affected by the COVID pandemic.

TFG: Expect Earnings Upturn from 4Q21 Onwards

By Research Group at Country Group Securities

  • Maintain HOLD rating, with TP of Bt5.30 (up 15% from previous TP), based on 22.8PE’22E which is Asia ex-Japan consumer staple. Recent product prices leap in-line with feed cost hike
  • Expect 4Q21 earnings at B120m (-72%YoY, +126%QoQ), the QoQ surge is due to the absence of Covid-related expense, together with sales growth and margin expansion, backed by food prices rally 
  • Solid 2022 outlook remains intact, since the product prices are expected to maintain at sky-high levels until 1H22, due to supply shortages caused by the widespread of Porcine Reproductive 

EASTW: Expect 4Q21 Earnings to Expand YoY but Drop QoQ

By Research Group at Country Group Securities

  • We expect the company to report 4Q21 net profit at Bt169m (+7%YoY, -26%QoQ).YoY expansion will be supported by benefit from selling price adjustment for raw water (kicked of 1Q21). However
  • 4Q21 raw water sales volume reported at 59.3 million m3 (+1%YoY -6%QoQ). Tap water sales volume contracted to 23.0 million m3 (-5%YoY -6%QoQ) 
  • For 2021, raw water sales volume recovered 15%YoY to 264 million m3 while tap water dropped 1%YoY to 97 million m3 

ORI: 4Q21 Earnings Will Be the Peak Quarter in 2021

By Research Group at Country Group Securities

  • We expect its 4Q21 net profit to be the peak quarter at Bt922 m(+44%YoY, +30%QoQ), driven by higher real estate sales recognition and rising income from service and hotel business
  • We expect earnings momentum to recover in 4Q21 supported by  3 new condo  projects and 6 new housing projects launch in 4Q21 (total value Bt6.3 bn)and secured backlog at Bt34bn
  • We maintain our positive outlook toward  2022 earnings backed by more aggressive launch new projects worth Bt26bn,(+47%YoY). Also, we expect revenue recognition from condominium project THE ORIGIN Ram 209 Interchange

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Jan 15
0

Thailand: Wice Logistics and more

By | Daily Briefs, Thailand

In today’s briefing:

  • WICE: Expect Strong Earnings Growth Momentum to Persist in 2022E

WICE: Expect Strong Earnings Growth Momentum to Persist in 2022E

By Research Group at Country Group Securities

  • We maintain WICE with a BUY rating while roll over target price to Bt27.10 (previous TP:16.70) ,derived from 27.4xPE’22E ( +0.5 S.D. five-year average), implies 40% discount to Thai transportation 
  • We expect strong earnings growth momentum to persist in 2022E supported by; 1.) high sea freight rate anticipated to last until mid 2H22 (sea freight contributes 48% of total revenue 
  • We expect WICE to report 4Q21 net profit at Bt167m (+182%YoY and +3%QoQ), the highest level since inception

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Jan 12
0

Thailand: Bangkok Expressway and Metro and more

By | Daily Briefs, Thailand

In today’s briefing:

  • BEM: Expect 4Q21 Earnings to Recover Strongly and Onward to 2022

BEM: Expect 4Q21 Earnings to Recover Strongly and Onward to 2022

By Research Group at Country Group Securities

  • We maintain BEM with a BUY rating and a target price of Bt10.30 derived from SOTP methodology, which is equivalent to 51.5xPE’22E.
  • We expect the company to report net profit of Bt290m in 4Q21. (+168%QoQ -49%YoY), the highest level in the past three quarters.
  • YoY contraction will be mainly due to impact from 3rd wave of COVID-19 widespread, which trimmed down average daily toll traffic to 984k trips/day(-13%YoY +47%QoQ) and MRT ridership to 175k 

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