LH: Expect 2Q21 Presales to Soften Down QoQ and YoY

LH: 4Q21 Earnings Will Be the Peak Quarter This Year

LH: Most Secure Property Developer in Thailand

LH: Expect 4Q20 Core Earnings to Be the Highest Level of 2020

ORI: Expect Flat 3Q20 Earnings but Strong Recovery in 4Q20

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>New project launches for LH’s housing business in 2021 seems unexcited for us given the project value at Bt21bn (-28%) which concentrated in single houses. However, we still positive toward the company’s strategy on clearing out unsold inventories (Bt9.2bn) and existing projects (Bt62bn) while we forecasted revenue for residential property business to maintain its high base level at Bt31bn (+10%YoY).  CAPEX plan for land acquisition and investment in rental property seems challenging at Bt11bn (+62%YoY).</strong></p><div><strong>• Positive earnings outlook in 2021</strong></div><div></div><div><strong>• Unexcited launch plan for housing business</strong></div><p></p><p><strong>We maintain LH with a BUY rating and a new target price of Bt9.50 (previous TP: Bt8.60) derived from an SOTP methodology while implies 14.6xPE’21E, 15% discount from average of Thailand Real Estate sector.</strong></p>

New project launches for LH’s housing business in 2021 seems unexcited for us given the project value at Bt21bn (-28%) which concentrated in single houses. However, we still positive toward the company’s strategy on clearing out unsold inventories (Bt9.2bn) and existing projects (Bt62bn) while we forecasted revenue for residential property business to maintain its high base level at Bt31bn (+10%YoY).  CAPEX plan for land acquisition and investment in rental property seems challenging at Bt11bn (+62%YoY).• Positive earnings outlook in 2021• Unexcited launch plan for housing businessWe maintain LH with a BUY rating and a new target price of Bt9.50 (previous TP: Bt8.60) derived from an SOTP methodology while implies 14.6xPE’21E, 15% discount from average of Thailand Real Estate sector.

Land & Houses PCL

LH: Positive Toward 2021 Business Plan