Thailand: True Corp Pcl, Siam Wellness Group, Frasers Property (Thailand) Pcl, Land & Houses PCL, Supalai Public Company and more

• The Information Memorandum is out regarding the True Corp Pcl (TRUE TB) / Total Access Communication (DTAC TB) merger.
• The shareholder meetings for both companies will be held on the 4 April, with a tentative listing date of the NewCo late September.
• The IFAs for both companies are of the opinion that shareholders should approve the Amalgamation. 

• Maintain BUY rating with a TP of Bt8.30, based on DCF (WACC of 9.8% and Terminal Growth of 3.5%), implying 25.9xPE’23. We see attractive play on reopening, upon the progress 
• Its 4Q21 net loss was at Bt46m, which continued for 7 consecutive quarters, attributed mainly to its operation below EBIT breakeven level.
• SPA’s 2021 net loss was at  Bt287m, pressured by weak revenue growth, which drop 61%YoY upon brief closure of spas and massages in Jan 21 and end of Apr-Sep 21.

• New TP of THB13, Top Pick LH (BUY)
• Residential division has yet to fully recover
• Expect lower gains from sale Mention this in the textof industrial properties
• Improvement in commercial property/hospitality unit

• Keep Buy, new TP of THB10.8
• Healthy Jan-Feb 2022 presales
• Major launches planned for 3Q22
• Expect solid pick-up in non-core businesses

We keep our Buy rating on LH as we expect all its businesses to stage significant rebounds this year, and for its attractive 6.6% FY22E dividend yield. We forecast FY22 earnings to grow 22% YoY and FY23 by another 10% YoY. 2H22 is likely to be strong with the bulk of launches in 3Q while overall performance should peak in the 4Q high season. Risks to our estimates include the macro outlook, rising inflation given a surge in energy prices, labour shortages and possible delays in launch/completion of projects. Our SOP-based TP rises 2% to THB10.80, after we fine-tune our earnings forecasts and factor in asset appreciation.

• Maintain HOLD, lower TP to THB24; Top Pick LH (BUY)
• Record-high FY21 revenue, earnings and margins
• Unexciting FY22E earnings due to high base
• Pedestrian earnings outlook for FY22-24E