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><strong>We downgrade from BUY to HOLD rating and cut our target price by 39% to Bt2.63 derived from 26.7xPE’21E, which is equal to -1SD of its three-year trading average. We maintain our positive view toward its outlook beyond 2020 given its growth plan and location advantage as its hotels have full coverage with almost every part in Thailand.</strong></p>
<div>• Expect 2Q20E performance to be the worst quarter</div>
<div>• Re-opening Hop Inn segment in Thailand</div>
<div>• 1Q20 result made the record loss of Bt103</div>
<div>• Trimmed 2020-22E forecast to factor in gloomy outlook</div>

We downgrade from BUY to HOLD rating and cut our target price by 39% to Bt2.63 derived from 26.7xPE’21E, which is equal to -1SD of its three-year trading average. We maintain our positive view toward its outlook beyond 2020 given its growth plan and location advantage as its hotels have full coverage with almost every part in Thailand.
• Expect 2Q20E performance to be the worst quarter
• Re-opening Hop Inn segment in Thailand
• 1Q20 result made the record loss of Bt103
• Trimmed 2020-22E forecast to factor in gloomy outlook

Erawan Group

ERW : 2Q20 Will Be the Bottom Quarter