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

Total Access Communication / Equity Bottom-Up

<p><strong>We initiate coverage of DTAC with a SELL rating, based on a target price of Bt32.70, derived from a DCF valuation (WACC of 7.9%, terminal growth of 2%). Our valuation implies a 16.8xPE’22E, which is 29% discount from Thailand Telecom sector at 23.5x.</strong></p><p><strong>The story:</strong></p><p>• Declining competitive position and profitability</p><div>• Failing to keep pace with 5G momentum</div><div></div><div>• Declining trend in the next 3-years earnings</div><div></div><div>• Low valuations justified</div><p></p><p><strong>Risks:</strong></p><p>• Intense competition in a saturated telecommunications industry</p><div>• New mega competitor after TOT and CAT merger</div><div></div><div>• Changes in NBTC’s board and regulatory policies</div>

We initiate coverage of DTAC with a SELL rating, based on a target price of Bt32.70, derived from a DCF valuation (WACC of 7.9%, terminal growth of 2%). Our valuation implies a 16.8xPE’22E, which is 29% discount from Thailand Telecom sector at 23.5x.The story:• Declining competitive position and profitability• Failing to keep pace with 5G momentum• Declining trend in the next 3-years earnings• Low valuations justifiedRisks:• Intense competition in a saturated telecommunications industry• New mega competitor after TOT and CAT merger• Changes in NBTC’s board and regulatory policies

Total Access Communication

DTAC: No Growth with Uncertain Prospects