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 initiate coverage of MAKRO with a HOLD rating and a target price of Bt37.50,based on a DCF approach (WACC of 8.7% and TG of 2%). Our valuation implies 38xPE’23E</li>
<li>Expect rebranding cost to peak in 3Q22 After MAKRO acquired Lotus’s,its SG&amp;A-to-sales ratio surged to 13.4% in 2Q22 (versus 8.4% in 3Q21)on costs stemming from a new B2B marketplace business</li>
<li>Plenty of room for overseas expansion MAKRO plans to enter three potentially high-growth countries (Vietnam, Philippines, and Indonesia).We believe MAKRO has two key competitive advantages that will support its expansion </li>
</ul>


We initiate coverage of MAKRO with a HOLD rating and a target price of Bt37.50,based on a DCF approach (WACC of 8.7% and TG of 2%). Our valuation implies 38xPE’23E
Expect rebranding cost to peak in 3Q22 After MAKRO acquired Lotus’s,its SG&amp;A-to-sales ratio surged to 13.4% in 2Q22 (versus 8.4% in 3Q21)on costs stemming from a new B2B marketplace business
Plenty of room for overseas expansion MAKRO plans to enter three potentially high-growth countries (Vietnam, Philippines, and Indonesia).We believe MAKRO has two key competitive advantages that will support its expansion 


MAKRO : Creating a ‘New S Curve’ Through O2O Channels

CP Axtra

MAKRO : Creating a ‘New S Curve’ Through O2O Channels