In today’s briefing:
- Thai Life Insurance Pre-IPO – Thoughts on Valuation and International Peer Comparison
- True/DTAC: Merger Support After Court Ruling
- ACommerce Pre-IPO – Updates Since Our Last Note – Probably Has to Scale Further to Become Profitable
- KKP : A Growth and Dividend Play
Thai Life Insurance Pre-IPO – Thoughts on Valuation and International Peer Comparison
- Thai Life Insurance is looking to raise up to US$1bn in its upcoming Thailand IPO.
- Thai Life Insurance is one of the largest life insurance companies in Thailand, third by assets. As of Mar 2022, it had 64,000 insurance agents.
- In this note, we will talk about valuations and undertake a peer comparison versus its international peers.
True/DTAC: Merger Support After Court Ruling
- According to local media, Thailand’s Central Administrative Court has dismissed a petition seeking to overturn a 2018 NBTC regulation that allowed mergers to take place without requiring the regulator’s approval.
- Reportedly the Court ruled earlier this month that the enforcement of this regulation was lawful; and that the DTAC/True merger would not cause unrecoverable damage to the telecom sector.
- Both DTAC and True gained on the news. A merger now appears increasingly more likely; although conditions may still be imposed to protect consumers.
ACommerce Pre-IPO – Updates Since Our Last Note – Probably Has to Scale Further to Become Profitable
- 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).
- In this note, we will discuss aCommerce’s updates since our last note.
KKP : A Growth and Dividend Play
- Maintain BUY for KKP with a target price of Bt82.00. We like its steady net profit growth, resilient fundamentals, and high dividend yield, expected at 5.3-6.6% for 2022-24.
- Strong 2Q22 net profit to rise YoY : We expect Kiatnakin Phatra (KKP) to post a net profit of Bt1.9b in 2Q22, up 39% YoY (-9% QoQ).
- Lending growth in 2Q22 will likely continue to be strong at 4.2% QoQ (1Q22: +6.5% QoQ), largely due to higher demand from vehicle hire purchase and mortgage lending.
Before it’s here, it’s on Smartkarma
