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

Central Retail Corp Ltd / Equity Bottom-Up

<p><strong>We initiate coverage of CRC with a BUY rating, based on a target price of Bt45.5, which is derived from a DCF methodology (12% WACC, 2% TG). Our target price implies 32.5xPE’20E, which represents a 28% premium to the Thailand Consumer Discretionary sector.</strong></p>
<p><strong>The story:</strong></p>
<div>• Leader in multi-category retailing in three countries</div>
<div>• Branch expansion will be a growth driver</div>
<div>• Competitive in Vietnam’s fast-growing retail market</div>
<div>• COVID-19 provides opportunity to expand omni-channel retailing</div>
<div>• Earnings expected to recover sharply in 2021</div>
<p></p>
<p><strong>Risks:</strong></p>
<div>• Intense competition in the retail industry</div>
<div>• Economic slowdown affects purchasing power</div>
<div>• Fast-changing consumer behavior can lead to obsolete stock</div>
<div>• Failure of investments and future development projects</div>

We initiate coverage of CRC with a BUY rating, based on a target price of Bt45.5, which is derived from a DCF methodology (12% WACC, 2% TG). Our target price implies 32.5xPE’20E, which represents a 28% premium to the Thailand Consumer Discretionary sector.
The story:
• Leader in multi-category retailing in three countries
• Branch expansion will be a growth driver
• Competitive in Vietnam’s fast-growing retail market
• COVID-19 provides opportunity to expand omni-channel retailing
• Earnings expected to recover sharply in 2021

Risks:
• Intense competition in the retail industry
• Economic slowdown affects purchasing power
• Fast-changing consumer behavior can lead to obsolete stock
• Failure of investments and future development projects

CRC:  Leading Multi-Format Retailer in Thailand