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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 downgrade RS to HOLD while trim down target price to Bt15.0 (Previous TP:Bt20) after revise down earnings in 2022-23E by 41-52%in order to factor in disappointed revenue from multi-platform </li>
<li>2Q22 should be the bottom quarter   RS reported 2Q22 net profit at Bt13m (-76%YoY -76%QoQ), significantly below our expectation. YoY drop in earnings pressured by weak performance for MPC </li>
<li>QoQ fall in profit dragged down by an increase in expense from ULife (acquired in May’22), which resulted in increasing SG&amp;A to sales ratio to 45.8% (vs.41.4% in 1Q22). Meanwhile</li>
</ul>


We downgrade RS to HOLD while trim down target price to Bt15.0 (Previous TP:Bt20) after revise down earnings in 2022-23E by 41-52%in order to factor in disappointed revenue from multi-platform 
2Q22 should be the bottom quarter   RS reported 2Q22 net profit at Bt13m (-76%YoY -76%QoQ), significantly below our expectation. YoY drop in earnings pressured by weak performance for MPC 
QoQ fall in profit dragged down by an increase in expense from ULife (acquired in May’22), which resulted in increasing SG&amp;A to sales ratio to 45.8% (vs.41.4% in 1Q22). Meanwhile


RS : 2H22 Earnings Recovery Remains Challenging

RS PCL

RS : 2H22 Earnings Recovery Remains Challenging