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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

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Equity Bottom-Up

Gulf Energy Development  / Equity Bottom-Up

We see the fall in GULF’s share price by 9% due to the news on capital increase and ADB's divestment of stake in GULF as an opportunity for accumulative buying given there is minimal impact to our valuation. Thus, we maintain our positive outlook and recommend BUY with a target price of Bt45.4 derived using sum-of-the-parts (SOTP) methodology, implying a 78x PE’21.Story:<ul>
<li>GULF announced increase of paid-up capital from Bt10.66bn to Bt11.73bn by issuing new 1.07bn common shares through rights offering.</li>
<li>Limited impact on GULFS valuation from ADB’s divestment of 1.7% stake in the company.</li>
</ul>

We see the fall in GULF’s share price by 9% due to the news on capital increase and ADB's divestment of stake in GULF as an opportunity for accumulative buying given there is minimal impact to our valuation. Thus, we maintain our positive outlook and recommend BUY with a target price of Bt45.4 derived using sum-of-the-parts (SOTP) methodology, implying a 78x PE’21.Story:
GULF announced increase of paid-up capital from Bt10.66bn to Bt11.73bn by issuing new 1.07bn common shares through rights offering.
Limited impact on GULFS valuation from ADB’s divestment of 1.7% stake in the company.


GULF: Short Term Negative Sentiments from Capital Increase