Category

Thailand

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.

Before it’s here, it’s on Smartkarma

Learn More
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.

Before it’s here, it’s on Smartkarma

Learn More
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

Before it’s here, it’s on Smartkarma

Learn More
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

Before it’s here, it’s on Smartkarma

Learn More
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

Before it’s here, it’s on Smartkarma

Learn More
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

Before it’s here, it’s on Smartkarma

Learn More
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 

Before it’s here, it’s on Smartkarma

Learn More
Jan 11
0

Thailand: PTT E&P and more

By | Daily Briefs, Thailand

In today’s briefing:

  • PTTEP: Solid Earnings Performance Hit by Impairment Loss

PTTEP: Solid Earnings Performance Hit by Impairment Loss

By Research Group at Country Group Securities

  • We expect PTTEP to post a solid 4Q21 net profit of Bt9.7bn (+283% YoY, +2% QoQ).
  • Excluding the impairment loss of US$200m (Mozambique, Yetagun projects), and US$100m gain from reversal of decommissioning expense of Bongkot project, the recurring profit is expected to be Bt13.2bn (+162% YoY)
  • The YoY surge will be from 10% and 27% growth in sales volume and  average product selling price (ASP) respectively.

Before it’s here, it’s on Smartkarma

Learn More
Jan 06
0

Thailand: Thailand SET Index, JMT Network Services, Mega Lifesciences and more

By | Daily Briefs, Thailand

In today’s briefing:

  • Thailand – Another Asian Break
  • JMT Network Services – Near Infinite Debt Collection Supply?
  • MEGA: Expect Growth Rate to Slow Down in 2022

Thailand – Another Asian Break

By Shyam Devani

  • Numerous New Year developments suggest markets are heading towards a world where the worst of the Covid might be behind us and a better growth trajectory awaits
  • Yields have moved higher, airlines & transport have performed well, Oil is up, and some Asian markets have started to rebound or breakout – Australia, Vietnam & India as examples
  • This brings Thailand in focus as one of the major tourist destinations. The charts below show the breakouts and potential trends at work

JMT Network Services – Near Infinite Debt Collection Supply?

By Daniel Tabbush

  • Can benefit from years of strong growth in banks’ debt collection
  • Returns remain exceptional at over 7% during last twelve months
  • Book value growth is astonishing from THB121m to THB5,755m in past 10 years

MEGA: Expect Growth Rate to Slow Down in 2022

By Research Group at Country Group Securities

  • We maintain BUY rating and roll over target price to Bt56 (+8% from previous TP) based on 25xPE’22E, a 15% discount from Thai health care peers.
  • We expect MEGA revenue growth rate to slow down to 4%YoY in 2022 caused by relieved customers concern over COVID-19 pandemic and high base effect.
  • Looking forward to 2023,  We foresee MEGA revenue to continues to grow at moderate level at 9%CAGR in 2023-2025E, close to the global dietary supplements market growth at 8.6%CAGR(2021-2028) 

Before it’s here, it’s on Smartkarma

Learn More
Jan 05
0

Thailand: Bangkok Bank Public and more

By | Daily Briefs, Thailand

In today’s briefing:

  • BBL: Growth Momentum Intact

BBL: Growth Momentum Intact

By Research Group at Country Group Securities

  • We expect BBL’s net profit to surge 165% YoY to Bt6.3bn in 4Q21, driven by lower provisions and higher net interest income. But, the profit will likely decline 8% QoQ 
  • Thai economy is on the path to recovery given higher private consumptions and continued government spending. BBL will likely gain benefits from an improvement in economic activities to shore up 
  • Given its resilient balance sheet, credit costs will likely continue to decline, which will sustain long-term growth and increase ROE.

Before it’s here, it’s on Smartkarma

Learn More