ERW : Expect Turnaround in 4Q22, but Has Mostly Priced In

ERW : Much Quicker Recovery Relative to Peers but Mostly Priced In

ERW: Spike in International Tourists Will Speed up the Recovery

ERW: Operational Losses Continued to Decline in 1Q22

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

<ul>
<li>Maintain BUY rating for ERW while roll over target price to Bt4.60. (Previous TP: 4.20) 2Q22 net loss at Bt139m was in-line with market estimate while EBITDA has turned positive </li>
<li>Net loss in 2Q22 improved substantially Stripping out extra gains mainly from sales of 3 Ibis hotels, loss from core operation would be at Bt160m(vs.Bt556m loss in 2Q21 and Bt316m </li>
<li>Revenue was at Bt974m (+271%YoY +53%QoQ),supported by luxury segment (44% of total revenue in 2Q22)where occupancy jumped to 66% (42% in 1Q22) while average room rate (ARR) recovered 66% YoY</li>
</ul>


Maintain BUY rating for ERW while roll over target price to Bt4.60. (Previous TP: 4.20) 2Q22 net loss at Bt139m was in-line with market estimate while EBITDA has turned positive 
Net loss in 2Q22 improved substantially Stripping out extra gains mainly from sales of 3 Ibis hotels, loss from core operation would be at Bt160m(vs.Bt556m loss in 2Q21 and Bt316m 
Revenue was at Bt974m (+271%YoY +53%QoQ),supported by luxury segment (44% of total revenue in 2Q22)where occupancy jumped to 66% (42% in 1Q22) while average room rate (ARR) recovered 66% YoY


ERW : EBITDA Turned Positive in 2Q22 Supported by Solid Recovery in All

Erawan Group

ERW : EBITDA Turned Positive in 2Q22 Supported by Solid Recovery in All