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 initiate coverage of ICHI with a BUY rating and a 2021E target price of Bt10.10, derived from 22.9xPE’21E which in line with the average of the Asia-ex Japan Consumer Staples sector and ICHI’s 5-year trading mean.</strong></p><p>The story:</p><ul>
<li>Recovery in tea market, driven by premium products</li>
<li>Potential growth from new functional drink, ‘pH+ 8.5’</li>
<li>Turnaround at Indonesian JV</li>
</ul><div></div><p>Risks:</p><ul>
<li>Foreign exchange rate fluctuation</li>
<li>Raw material price fluctuation</li>
<li>Highly competitive industry</li>
</ul>

We initiate coverage of ICHI with a BUY rating and a 2021E target price of Bt10.10, derived from 22.9xPE’21E which in line with the average of the Asia-ex Japan Consumer Staples sector and ICHI’s 5-year trading mean.The story:
Recovery in tea market, driven by premium products
Potential growth from new functional drink, ‘pH+ 8.5’
Turnaround at Indonesian JV
Risks:
Foreign exchange rate fluctuation
Raw material price fluctuation
Highly competitive industry


Ichitan Group

ICHI: New S Curve from Functional Drink