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 RATCH with a BUY rating, based on a target price of Bt81.5, derived from a sum-of-the-parts (SOTP) methodology. Our valuation implies a 0.86x relative PE to the Thai utility sector, or 16.3xPE’ 20E 
The story:
<ul>
<li>13% growth in new capacity in the next 3 years will drive earnings to grow 19% in 2019E and a CAGR of 14% in 2019-21E</li>
<li>Awarded new 1,400 MW CCGT plant to replace TECO.</li>
<li>Upside from infrastructure project with JV</li>
<li>Upside from renewable project in Australia</li>
</ul>
Risks:
<ul>
<li>Exchange rate fluctuation</li>
<li>Delays in construction period of committed projects</li>
<li>Litigation case</li>
</ul>

We initiate coverage of RATCH with a BUY rating, based on a target price of Bt81.5, derived from a sum-of-the-parts (SOTP) methodology. Our valuation implies a 0.86x relative PE to the Thai utility sector, or 16.3xPE’ 20E 
The story:

13% growth in new capacity in the next 3 years will drive earnings to grow 19% in 2019E and a CAGR of 14% in 2019-21E
Awarded new 1,400 MW CCGT plant to replace TECO.
Upside from infrastructure project with JV
Upside from renewable project in Australia

Risks:

Exchange rate fluctuation
Delays in construction period of committed projects
Litigation case


RATCH: Entrenched Leader in Thai Utilities Sector with Attractive Valuation

Ratch Group PCL

RATCH: Entrenched Leader in Thai Utilities Sector with Attractive Valuation