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

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

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

ERW: The Seventh Consecutive Quarter Loss in 3Q21

ERW: Spike in International Tourists Will Speed up the Recovery

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>Analyst meeting came out with positive tone regarding 22E outlook.We maintain BUY rating with TP Bt4.20 derived from DCF valuation (WACC=7% &amp; Terminal growth= 2%) implying 10% discount to 23.1xPE’23.</li>
<li>The company reported net loss of Bt313m in 1Q22 compared to net loss of Bt492m in 1Q21 and net loss of Bt246 in 4Q21 in line with our expectation.</li>
<li>Excluding extra ordinary items, the operational losses declined YoY and QoQ to Bt313m since revenue almost doubled YoY  and increased 4% QoQ to Bt646m after bottoming out in 3Q21.</li>
</ul>


Analyst meeting came out with positive tone regarding 22E outlook.We maintain BUY rating with TP Bt4.20 derived from DCF valuation (WACC=7% &amp; Terminal growth= 2%) implying 10% discount to 23.1xPE’23.
The company reported net loss of Bt313m in 1Q22 compared to net loss of Bt492m in 1Q21 and net loss of Bt246 in 4Q21 in line with our expectation.
Excluding extra ordinary items, the operational losses declined YoY and QoQ to Bt313m since revenue almost doubled YoY  and increased 4% QoQ to Bt646m after bottoming out in 3Q21.


ERW: Operational Losses Continued to Decline in 1Q22

Erawan Group

ERW: Operational Losses Continued to Decline in 1Q22