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

Interlink Communication / Equity Bottom-Up

We initiate coverage on ILINK with a BUY rating and a 2018E target price of Bt18.00, based on a sum-of-the-parts (SOTP) valuation that is made up of: i) distribution and engineering businesses at Bt9.3, derived from a 15.5x PE, and ii) Telecom business at Bt8.7, based on 10% conglomerate discount of our ITEL fair price at Bt6.1, derived from a 33.2xPE’18E, which spells a 1.0x PEG.The story:<ul><li>Prime beneficiary of official Digital Economy support</li><li>Attractive implicit value of its subsidiary, ITEL</li><li>Visible turnaround in engineering business</li><li>Quarterly earnings have bottomed out</li></ul>Risks:<ul><li>Unpredictable earnings from its engineering business.</li><li>Fluctuations in exchange rates, which directly affect the company’s net profit.</li><li>Risk from the termination of a distribution contract.</li></ul>

We initiate coverage on ILINK with a BUY rating and a 2018E target price of Bt18.00, based on a sum-of-the-parts (SOTP) valuation that is made up of: i) distribution and engineering businesses at Bt9.3, derived from a 15.5x PE, and ii) Telecom business at Bt8.7, based on 10% conglomerate discount of our ITEL fair price at Bt6.1, derived from a 33.2xPE’18E, which spells a 1.0x PEG.The story:Prime beneficiary of official Digital Economy supportAttractive implicit value of its subsidiary, ITELVisible turnaround in engineering businessQuarterly earnings have bottomed outRisks:Unpredictable earnings from its engineering business.Fluctuations in exchange rates, which directly affect the company’s net profit.Risk from the termination of a distribution contract. 

Interlink Communication

ILINK: Wired to Ride Business Renewal