Thai Equity - Bottom-up - Equities, Pi Securities PCL, Thailand

Pi Research

Thai Equity - Bottom-up - Equities

Leading, full-service investment firm in Thailand

Pi Securities PCL, Thailand

Pi Securities is a well known securities company with 40 years experience in the industry, serving more than 60,000 clients. We offer one - stop service providing full range of financial products and services including extensive Brokerage, Proprietary Trading (Equities and Bonds), Advisory Services, Structured Products.

Moreover, our new research team tailored for institutional clients to focus on mid to small cap of Thai equities and trading strategies. Our services offered to our premium clients also include arrangement of company or site visits to with the managements of Thai listed companies.

Note: Effective on 1 March 2022, Country Group Securities PCL changed its name to Pi Securities

Equity Bottom-Up

<p><strong>We initiate coverage of ADVANC with a BUY rating, based on a target price of Bt236.5, which is derived from a DCF methodology (WACC of 10.7% and terminal growth of 2%). Our target price implies 22.1xPE’20E, which is higher than the average of the Thailand telecoms sector.</strong></p>
<p><strong>The story:</strong></p>
<div>• Leading position in a cash cow business</div>
<div>• Growing fixed broadband business</div>
<div>• Ready for 5G expansion</div>
<div>• 5G license costs to mildly pressure 3-year earnings</div>
<div>• Global 5G in its early stage</div>
<div></div>
<p><strong>Risks:</strong></p>
<div>• Intense competition in the telecommunication industry</div>
<div>• Changes in customer behavior</div>
<div>• Threat from cyber-attacks</div>

We initiate coverage of ADVANC with a BUY rating, based on a target price of Bt236.5, which is derived from a DCF methodology (WACC of 10.7% and terminal growth of 2%). Our target price implies 22.1xPE’20E, which is higher than the average of the Thailand telecoms sector.
The story:
• Leading position in a cash cow business
• Growing fixed broadband business
• Ready for 5G expansion
• 5G license costs to mildly pressure 3-year earnings
• Global 5G in its early stage

Risks:
• Intense competition in the telecommunication industry
• Changes in customer behavior
• Threat from cyber-attacks

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