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 BGRIM with a BUY rating, based on a 2020E target price of Bt48, derived from discounted cash flow valuation (6.9% WACC and 1% TG). Our valuation implies 34.3xPE’20, which is equivalent to 0.82x PEG for 2019-21E, lower than its peers’ 1.6x PEG.The story:<ul>
<li>Expect 25% CAGR EPS growth during 2019-22E</li>
<li>Promising domestic and overseas outlooks</li>
<li>Secured earnings through SPP extension and replacement scheme</li>
<li>Poised to be a leader in solar power business in Vietnam</li>
</ul>Risks:<ul>
<li>Exchange rate fluctuation</li>
<li>Delay in construction period of committed projects</li>
<li>Fuel price fluctuation</li>
</ul>

We initiate coverage of BGRIM with a BUY rating, based on a 2020E target price of Bt48, derived from discounted cash flow valuation (6.9% WACC and 1% TG). Our valuation implies 34.3xPE’20, which is equivalent to 0.82x PEG for 2019-21E, lower than its peers’ 1.6x PEG.The story:
Expect 25% CAGR EPS growth during 2019-22E
Promising domestic and overseas outlooks
Secured earnings through SPP extension and replacement scheme
Poised to be a leader in solar power business in Vietnam
Risks:
Exchange rate fluctuation
Delay in construction period of committed projects
Fuel price fluctuation


BGRIM: Thai SPP Leader with Consistent Growth Prospects

B Grimm Power

BGRIM: Thai SPP Leader with Consistent Growth Prospects