ILM: King of Home Furnishing Retailers in Thailand

ILM: Expect 4Q20 Earnings Improve Both YoY and QoQ

DOHOME: Expect SSSG Stronger than Peers in 2H20 and 2021

DOHOME: Fastest Growing Home-Improvement Player in Thailand

GLOBAL: Home-Improvement Player Eyes Opportunities in ASEAN

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 downgrade DOHOME from BUY to HOLD due to limited upside to our target. Our new target price of Bt14.2 (Previous TP; 16.50) derived from 33xPE’21E, which is close to the biggest home-improvement player in Thailand. Our target price cut factored in 17% dilution to EPS’21 from stock dividend paid during 3Q20 DOHOME reported 3Q20 net profit at Bt187m (+40%YoY, +28%QoQ). The 9M20 result was in-line with our expectation and accounted for 73% of 2020E forecast.<ul>
<li>We expect 4Q20 earnings performance to grow YoY, but flat QoQ driven by government stimulus scheme and improving margin from higher retail sales contribution.</li>
<li>We still like DOHOME for its 1) cheapest valuation with high potential growth compared to peers; 2) its store locations that aim to tap high spending customers; 3) store network expansion plan with +25%CAGR in the next two years; and 4) the ample room to improve its margin.</li>
</ul>

We downgrade DOHOME from BUY to HOLD due to limited upside to our target. Our new target price of Bt14.2 (Previous TP; 16.50) derived from 33xPE’21E, which is close to the biggest home-improvement player in Thailand. Our target price cut factored in 17% dilution to EPS’21 from stock dividend paid during 3Q20 DOHOME reported 3Q20 net profit at Bt187m (+40%YoY, +28%QoQ). The 9M20 result was in-line with our expectation and accounted for 73% of 2020E forecast.
We expect 4Q20 earnings performance to grow YoY, but flat QoQ driven by government stimulus scheme and improving margin from higher retail sales contribution.
We still like DOHOME for its 1) cheapest valuation with high potential growth compared to peers; 2) its store locations that aim to tap high spending customers; 3) store network expansion plan with +25%CAGR in the next two years; and 4) the ample room to improve its margin.


DOHOME: Solid SSSG Drove 3Q20 Earnings to Grow YoY

Dohome PCL

DOHOME: Solid SSSG Drove 3Q20 Earnings to Grow YoY