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

We initiate coverage of PTTEP with a BUY rating, based on a 2020E target price of Bt142, derived from a discounted cash flow valuation (WACC of 10% and TG of 2%). Our valuation implies 11.3x PE’20, which is in line with the Thai Energy Sector.The story:<ul>
<li>Leading petroleum exploration and production business in Thailand</li>
<li>Expect sales volume to increase by 6% CAGR in 2021-24</li>
<li>Solid financial position from which to expand regional and overseas investments</li>
<li>Attractive dividend yield of 4-5%</li>
</ul>Risks: <ul>
<li>Foreign exchange rate fluctuation</li>
<li>Oil price fluctuation</li>
<li>Decline in proven reserves of oil and gas</li>
</ul>

We initiate coverage of PTTEP with a BUY rating, based on a 2020E target price of Bt142, derived from a discounted cash flow valuation (WACC of 10% and TG of 2%). Our valuation implies 11.3x PE’20, which is in line with the Thai Energy Sector.The story:
Leading petroleum exploration and production business in Thailand
Expect sales volume to increase by 6% CAGR in 2021-24
Solid financial position from which to expand regional and overseas investments
Attractive dividend yield of 4-5%
Risks: 
Foreign exchange rate fluctuation
Oil price fluctuation
Decline in proven reserves of oil and gas


PTTEP: Thai E&P Leader with Promising Growth Outlook

PTT E&P

PTTEP: Thai E&P Leader with Promising Growth Outlook