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 MINT with a BUY rating, based on a target price of Bt32.7, which is derived from a DCF methodology (7% WACC, 2% terminal growth). Our target price implies 37.2xPE’22E, which represents a 6% premium to the Thailand Consumer Discretionary sector.</strong></p>
<p><strong>The story:</strong></p>
<div>• Established brand portfolio with low financial risk</div>
<div>• European and American operations will benefit from post-COVID recovery</div>
<div>• Hotel business should return to pre-COVID level by late 2021</div>
<div>• Acquisition of new food brand to support earnings growth</div>
<p></p>
<p><strong>Risks:</strong></p>
<div>• Price competition in the hotel industry</div>
<div>• Low barrier to entry in food business</div>
<div>• Success of new investments or acquisitions</div>
<div>• Thai baht fluctuation</div>

We initiate coverage of MINT with a BUY rating, based on a target price of Bt32.7, which is derived from a DCF methodology (7% WACC, 2% terminal growth). Our target price implies 37.2xPE’22E, which represents a 6% premium to the Thailand Consumer Discretionary sector.
The story:
• Established brand portfolio with low financial risk
• European and American operations will benefit from post-COVID recovery
• Hotel business should return to pre-COVID level by late 2021
• Acquisition of new food brand to support earnings growth

Risks:
• Price competition in the hotel industry
• Low barrier to entry in food business
• Success of new investments or acquisitions
• Thai baht fluctuation

MINT: Global Player in Hospitality and Food Chains

Minor International

MINT: Global Player in Hospitality and Food Chains