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

After analyst meeting yesterday, we are cautious about buildup of competition intensity in FSU market. Meanwhile, the management guided unexciting plan for capex allocation in 2020.  We maintain a HOLD rating with a target price of Bt8.50 derived from 0.9xPEG’1H20E, average of Asia ex-Japan transportation sector.Key takeaway:<ul>
<li>Solid 2H19 earnings will be supported by 1.) three new VLCCs in FSU business will be on-hired at the same time, 2.) Revenue recognition from 80% stake in Big sea, 3.) Revenue recognition from two new-built vessels.</li>
<li>Expect more competitive environment for FSU business in 2020 on the back of new supply from onshore storage and new players in the industry.</li>
<li>From the management guidance regarding investment plan in 2020, we believe the expenditure budget could be likely lower compared to 2019 as they intend to shift its focus to domestic fleet expansion rather than VLCCs in high margin FSU business.</li>
</ul>

After analyst meeting yesterday, we are cautious about buildup of competition intensity in FSU market. Meanwhile, the management guided unexciting plan for capex allocation in 2020.  We maintain a HOLD rating with a target price of Bt8.50 derived from 0.9xPEG’1H20E, average of Asia ex-Japan transportation sector.Key takeaway:
Solid 2H19 earnings will be supported by 1.) three new VLCCs in FSU business will be on-hired at the same time, 2.) Revenue recognition from 80% stake in Big sea, 3.) Revenue recognition from two new-built vessels.
Expect more competitive environment for FSU business in 2020 on the back of new supply from onshore storage and new players in the industry.
From the management guidance regarding investment plan in 2020, we believe the expenditure budget could be likely lower compared to 2019 as they intend to shift its focus to domestic fleet expansion rather than VLCCs in high margin FSU business.


PRM: 2H19 Outlook Remain Solid but Mostly Priced In

Prima Marine PCL

PRM: 2H19 Outlook Remain Solid but Mostly Priced In