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

We initiate coverage of BCPG with a BUY rating, based on a 2020E target price of Bt22.1, derived from a discounted cash flow valuation (WACC 5.1% and TG 1.0%). Our valuation implies 18.8xPE’20E, or a 0.92x relative PE to the Thai utility sector.The story:<ul>
<li>Expect earnings to drop 11% in 2019 and grow at 13% CAGR during 2020-22E</li>
<li>Promising domestic and overseas outlooks</li>
<li>Upside from recent acquisition of 69MW hydropower plant in Laos</li>
<li>Poised to be early leader in block chain-based P2P power trading in Thailand.</li>
</ul>Risks:<ul>
<li>Fluctuation of exchange rates</li>
<li>Reliance on key customers</li>
</ul>

We initiate coverage of BCPG with a BUY rating, based on a 2020E target price of Bt22.1, derived from a discounted cash flow valuation (WACC 5.1% and TG 1.0%). Our valuation implies 18.8xPE’20E, or a 0.92x relative PE to the Thai utility sector.The story:
Expect earnings to drop 11% in 2019 and grow at 13% CAGR during 2020-22E
Promising domestic and overseas outlooks
Upside from recent acquisition of 69MW hydropower plant in Laos
Poised to be early leader in block chain-based P2P power trading in Thailand.
Risks:
Fluctuation of exchange rates
Reliance on key customers


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