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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

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>We maintain BUY but cut TP by 9% to Bt52.50 based on 21.3xPE’1H23E (+1S.D.of 5-year average trading) to reflect more cautious view on its earnings growth in 2H22 and 2023. </li>
<li>Lower USD sales but improving gross margin in2Q22Weak 2Q22 USD sales at US$186m (-4%YoY,flat QoQ)was caused by waning demand for PC and Mobile PCBs and ICs (~30%of HANA’s total sales)</li>
<li>Gross margin expansion QoQ to 13.7% in 2Q22 (-3.0ppts YoY,+2.9ppts QoQ) was caused by favorable exchange rates and economies of scale.We share management’s  belief that the margin is unsustainable </li>
</ul>


We maintain BUY but cut TP by 9% to Bt52.50 based on 21.3xPE’1H23E (+1S.D.of 5-year average trading) to reflect more cautious view on its earnings growth in 2H22 and 2023. 
Lower USD sales but improving gross margin in2Q22Weak 2Q22 USD sales at US$186m (-4%YoY,flat QoQ)was caused by waning demand for PC and Mobile PCBs and ICs (~30%of HANA’s total sales)
Gross margin expansion QoQ to 13.7% in 2Q22 (-3.0ppts YoY,+2.9ppts QoQ) was caused by favorable exchange rates and economies of scale.We share management’s  belief that the margin is unsustainable 


Hana Microelectronics

HANA : Weaker Outlook on 2H22