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>We initiate coverage of CENTEL with a BUY rating, based on a target price of Bt25.0, which is derived from a DCF methodology (11% WACC, 2% terminal growth). Our target price implies 47.8xPE’21E, which represents a 34% premium to the Thailand Consumer Discretionary sector.</p>
<p><strong>The story:</strong></p>
<div>• Well-diversified portfolio with strong balance sheet</div>
<div>• Cash cow food business will stabilize overall performance</div>
<div>• Hotel business to enter next growth phase by 2022</div>
<div>• Main beneficiary of domestic tourism stimulus package</div>
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<p><strong>Risks:</strong></p>
<div>• Intense competition in the hotel industry</div>
<div>• Many existing and new players in the food industry</div>
<div>• Economic slowdown to squeeze purchasing power</div>
<div>• Appreciation of Thai baht</div>

We initiate coverage of CENTEL with a BUY rating, based on a target price of Bt25.0, which is derived from a DCF methodology (11% WACC, 2% terminal growth). Our target price implies 47.8xPE’21E, which represents a 34% premium to the Thailand Consumer Discretionary sector.
The story:
• Well-diversified portfolio with strong balance sheet
• Cash cow food business will stabilize overall performance
• Hotel business to enter next growth phase by 2022
• Main beneficiary of domestic tourism stimulus package

 

Risks:
• Intense competition in the hotel industry
• Many existing and new players in the food industry
• Economic slowdown to squeeze purchasing power
• Appreciation of Thai baht

CENTEL:  Will Bounce Back to Pre-COVID-19 Levels in 2022

Central Plaza Hotel

CENTEL: Will Bounce Back to Pre-COVID-19 Levels in 2022