M: Expect Strong Earnings Recovery in 1Q22

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>Maintain BUY recommendation for M with a target price of Bt64. A strong earnings recovery outlook in restaurant with an additional catalyst from international tourist arrivals.</li>
<li>Solid SSSG amid rising inflation SSSG in three main brands remain solid at +170%YoY in July 2022 and SSSG is discount at 10-15% from pre-COVID level in Aug 2022 supported </li>
<li>Insignificant impact from minimum wage adjustment The restaurant business is a labor-intensive industry which depends very much on employees. Cost of employee accounted for 48%-52% of operating expense during 2019-2021.</li>
</ul>


Maintain BUY recommendation for M with a target price of Bt64. A strong earnings recovery outlook in restaurant with an additional catalyst from international tourist arrivals.
Solid SSSG amid rising inflation SSSG in three main brands remain solid at +170%YoY in July 2022 and SSSG is discount at 10-15% from pre-COVID level in Aug 2022 supported 
Insignificant impact from minimum wage adjustment The restaurant business is a labor-intensive industry which depends very much on employees. Cost of employee accounted for 48%-52% of operating expense during 2019-2021.


MK Restaurants Group

M : Bright Earnings Outlook in 2022-24