In today’s briefing:
- BBL : Sustaining Growth Amid Uncertainty
- Micron Technology Inc.: FValue Proposition, EUV Upside, i400 MicroSD Launch & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (07/22)
- Nagacorp: Six Month 2022 Results Validate Bullish Outlook for Year as Pandemic Wanes in Cambodia
- SCB : Recovery Amidst Rising Global Risks
- Walgreens Boots Alliance Inc.: Digital Transformation, The Partnership With Adobe Expand, Strategy & Key Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (07/22)
- Paychex Inc.: Revenue Model, Product Enhancements, Switching Costs & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (07/22)
- General Mills Inc.: Focus On Innovation & Future Trends, The TNT Crust Acquisition & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (07/22)
- McCormick & Company: Growth Story, Market Position, Cost Advantage & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (07/22)
BBL : Sustaining Growth Amid Uncertainty
- Maintain BUY for BBL with a target price of Bt159. withstand uncertainty, sustainable profit growth, potential benefits from an upcycle of interest rates, and undemanding valuation. BBL’s 2Q22 net profit
- 2Q22 results BBL reported a net profit of Bt7.0bn in 2Q22, up 10% YoY (-2% QoQ), which was 6% lower than expected on higher provisions. The YoY rise was supported
- Lending growth in 2Q22 increased by 2.5% QoQ due to large corporate loans and loans made through the international network.The NPL ratio slightly increased to 3.4% and the coverage ratio
Micron Technology Inc.: FValue Proposition, EUV Upside, i400 MicroSD Launch & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (07/22)
- Micron Technology delivered a decent quarter matching Wall Street expectations in terms of revenues but delivered an earnings beat.
- The company’s performance has been driven by the forte in DRAM shipments to game, console, PC, and cloud customers.
- Among new launches, Micron recently announced the launch of the i400 microSD card and partnership programs with IQ (Industrial Quotient).
Nagacorp: Six Month 2022 Results Validate Bullish Outlook for Year as Pandemic Wanes in Cambodia
- We have long been fans of this company due to its record of sound management decisions and asset allocation moves to expand steadily against demand.
- Six month results support our thesis that ASEAN casinos that have reopened are re-ramping revenues apace as Macau remains dead pooled by Beijing zero tolerance covid policies.
- At its current price we see mounting sentiment to the upside as sequential earnings improvements y.y can be expected in Qs 3 and 4.
SCB : Recovery Amidst Rising Global Risks
- Maintain BUY for SCB with a target price of Bt139.00. SCB’s 2Q22 net profit came in line with our expectation of Bt10bn (+14% YoY, -1% QoQ). Asset quality remained resilient
- Analyst meeting We are neutral after attending the analyst meeting on 21 July. SCB adjusted some2022 financial guidance to reflect its 1H22 performance and potential effects on the economic environment.
- Despite the volatility in the cryptocurrency market,SCB would continue to pursue its business expansion in digital asset businesses. SCB mentioned that it had minimal cryptocurrency exposure of less than US$1m.
Walgreens Boots Alliance Inc.: Digital Transformation, The Partnership With Adobe Expand, Strategy & Key Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (07/22)
- Walgreens Boots Alliance is off to a strong start to the year with growth in first-quarter sales and adjusted earnings, a performance that was beyond Wall Street experience.
- The company had a particularly strong quarter online, which includes purchasing online pickup in-store.
- We provide the stock of Walgreens Boots Alliance with a ‘Hold’ rating with a revision in the target price.
Paychex Inc.: Revenue Model, Product Enhancements, Switching Costs & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (07/22)
- Paychex had a strong quarter with growth driven by strong retention and sales.
- The company delivered an all-around beat surpassing market expectations and there was an increase in total revenue as well as service revenue.
- We provide the stock of Paychex Inc. a ‘Hold’ rating with a revision in the target price.
General Mills Inc.: Focus On Innovation & Future Trends, The TNT Crust Acquisition & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (07/22)
- General Mills had a decent start to 2022 and its last quarter was another all-around beat.
- Most of the media spend is now digital and General Mills is leveraging the same to build a solid databank that can be helpful in improved customer targeting.
- We provide the stock of General Mills a ‘Hold’ rating with a revision in the target price.
McCormick & Company: Growth Story, Market Position, Cost Advantage & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (07/22)
- McCormick had a disappointing quarterly result as it failed to meet Wall Street expectations despite the fact that its revenues showed both volume and pricing growth.
- The growth of the company in flavor solutions was decent but supply chain and high-cost inflation are continuing challenges for the company.
- In EMEA, McCormick continues to have a robust share performance in most markets and categories.
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