Category

Thailand

Feb 07
0

Thailand: Home Product Center and more

By | Daily Briefs, Thailand

In today’s briefing:

  • HMPRO: Expect 4Q21 Earnings to Be the Highest of This Year

HMPRO: Expect 4Q21 Earnings to Be the Highest of This Year

By Research Group at Country Group Securities

  • We maintain BUY rating for HMPRO with a target price to Bt16.10, derived from 35xPE’22E, or implying 40% premium to Thai Consumer Discretionary.
  • We expect HMPRO to report 4Q21 net profit at Bt1.57bn (+2%YoY, +80%QoQ),thanks to stores sales recovery (SSSG at +10%YoY) supported by pent-up demand, demand from home renovation after a flood
  • We foresee 2022E earnings to grow to Bt6bn close to pre-COVID levels (+16%YoY) supported by 1) a solid revenue growth at 4% close to Thailand GDP growth from re-opening stores

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Feb 05
0

Thailand: Major Cineplex Group and more

By | Daily Briefs, Thailand

In today’s briefing:

  • MAJOR: Expect EBITDA to Turn Positive from 4Q21 and Onward to 2022

MAJOR: Expect EBITDA to Turn Positive from 4Q21 and Onward to 2022

By Research Group at Country Group Securities

  • We expect the company’s operating performance to improve gradually from the bottom in 3Q21as there are number of quality movies to be released after been postponed upon restricted measures induced 
  • Expect the company to report Bt47m net profit in 4Q21, seven-quarter high in terms of core business operation
  • EBITDA in 4Q21 is expected to turn positive as it driven by pent-up demand after lockdown together with impressive ticket sales from Spider-Man: No Way Home.

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Feb 04
0

Thailand: Bangkok Bank Public and more

By | Daily Briefs, Thailand

In today’s briefing:

  • BBL: Growth Momentum to Continue

BBL: Growth Momentum to Continue

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.
  • BBL was optimistic about the economic growth in 2022 given the limited impacts of the Omicron variant and successful vaccination rollout.
  • The bank’s lending strategy in 2022 remained concentrated on a rise in corporate and international loans. 

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Feb 03
0

Thailand: THB, TOA Paint (Thailand) and more

By | Daily Briefs, Thailand

In today’s briefing:

  • Drivers Behind the Turnaround of Asian Currencies
  • TOA: Expect Earnings to Recover Slowly in 2022

Drivers Behind the Turnaround of Asian Currencies

By Gautam Jain, PhD, CFA

  • The turnaround of Asian currencies is likely to continue with growth resurfacing in the region ex-China and the interest rate differential with the rest of emerging markets narrowing.
  • The main risks to watch are whether the slowdown in China worsens and weighs on the region as a whole and whether central banks embark on FX interventions again.
  • While the overall view on Asian currencies is constructive, I prefer cross-country trades to take advantage of differences arising from idiosyncratic drivers and to eliminate the dollar risk.

TOA: Expect Earnings to Recover Slowly in 2022

By Research Group at Country Group Securities

  • We believe a high raw material cost will not be sustain given U.S. Energy Information Administration (EIA) forecasts crude oil prices to decline in 2022.We reiterate BUY rating for TOA
  • We expect TOA to report 4Q21 net profit at Bt365m (-26%YoY, +36%QoQ),
  • We forecast 2022E earnings to hit Bt2bn (+13%YoY) supported by 1) demand for painting and construction materials from hotel, restaurants, and other related tourism destinations (re-painting demand)

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Feb 02
0

Thailand: Asian Sea and more

By | Daily Briefs, Thailand

In today’s briefing:

  • ASIAN: Unlock Value and Potential Growth of AAI Via IPO

ASIAN: Unlock Value and Potential Growth of AAI Via IPO

By Research Group at Country Group Securities

  • Maintain BUY rating and roll forward valuations to FY22E, with a new target price of Bt23 (up 5% from previous TP),based on 10.3xPE’22, which is close to its 10-years historical
  • Our ratings reflect positive view on pet food, frozen VAP, and aqua feed demand recovery post lockdown, and solid margin from baht weakening.
  • The spin-off of AAI via IPO issuance will unlock its value and growth potential and we leave it as an upside to our TP.

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Feb 01
0

Thailand: PTT E&P and more

By | Daily Briefs, Thailand

In today’s briefing:

  • PTTEP: Bright 2022 Outlook from Sales Growth & Rising Oil Price

PTTEP: Bright 2022 Outlook from Sales Growth & Rising Oil Price

By Research Group at Country Group Securities

  • Last week analyst meeting came out in a positive tone. The improving sales volume and rising oil price should aid the earnings momentum in 1Q22 and ahead.We maintain the BUY
  • Expect 1Q22 earnings to improve both YoY and QoQ on the back of 1) 4% and 2% QoQ growth in sales volume and ASP, respectively. And 2) No significant impairment
  • Positive 2022 earnings outlook as the sales volume is expected to increase by +12% YoY to 467kBOED, and ASP by 5% to US$46/BOE.

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Jan 31
0

Thailand: Total Access Communication, Kasikornbank PCL and more

By | Daily Briefs, Thailand

In today’s briefing:

  • DTAC/TRUE Merger: Stocks Trading Near Their VTO Prices
  • KBANK: More Focusing on Growth

DTAC/TRUE Merger: Stocks Trading Near Their VTO Prices

By Brian Freitas

KBANK: More Focusing on Growth

By Research Group at Country Group Securities

  • We reiterate our BUY rating with a new target price of Bt174. Our BUY call reflects (1) steady growth ahead from improving economic recovery; (2) adequate reserves against new NPLs
  • Focus on the quality of growth and NPL management ahead.
  • The bank guided lending growth of 6-8% YoY in 2022 with an emphasis on a rise in retail loans and SME loans.

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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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