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

BG Container Glass PCL / Equity Bottom-Up

<ul>
<li>We keep our HOLD rating with TP of Bt10.5,derived from 13.2xPE’23E.We expect 3Q22 earnings to recover QoQ, backed by effective pass-through of higher raw materials costs after lagged in 2Q22</li>
<li>Neutral tone from the analyst meeting We believe 3Q22 earnings momentum to recover QoQ but slightly drop YoY backed by healthier gross margin guidance at around 13% (-6.1ppts YoY,and +0.9%QoQ)</li>
<li>Margin weakness dragged 2Q22 core profit BGC’s 2Q22 net income came in at Bt108m (-12%YoY,-50%QoQ),which was in line with our forecast.Excluding the extra gains, its core profit was at Bt71m(-43%YoY,-47%QoQ)</li>
</ul>


We keep our HOLD rating with TP of Bt10.5,derived from 13.2xPE’23E.We expect 3Q22 earnings to recover QoQ, backed by effective pass-through of higher raw materials costs after lagged in 2Q22
Neutral tone from the analyst meeting We believe 3Q22 earnings momentum to recover QoQ but slightly drop YoY backed by healthier gross margin guidance at around 13% (-6.1ppts YoY,and +0.9%QoQ)
Margin weakness dragged 2Q22 core profit BGC’s 2Q22 net income came in at Bt108m (-12%YoY,-50%QoQ),which was in line with our forecast.Excluding the extra gains, its core profit was at Bt71m(-43%YoY,-47%QoQ)


BG Container Glass PCL

BGC : Earnings Recovery in Sight