SCB: SCBX Will Unlock Potential Growth in the Long-Term

The Week That Was in ASEAN@Smartkarma - BNI More Digital, Erajaya on Fire, and Siam Commercial Bank

SCB: Expect 3Q21 Earnings to Drop in Two Consecutive Quarter.

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 on SCB with a BUY rating, based on a target price of Bt 124.50. Our target price derived from 0.99xAVG PBV (target ROE at 8.2% and long term growth at 2%), implying 5-years trading average of Thailand banks.The story:• Potential loan growth post-COVID with better quality• Strong recurring non-interest income amid Covid-19 crisis• Improving asset qualityRisks:• Higher NPLs that would cause higher provisions set aside• Prolong low interest rate would decrease NIM• Delay in vaccine roll-out

We initiate coverage on SCB with a BUY rating, based on a target price of Bt 124.50. Our target price derived from 0.99xAVG PBV (target ROE at 8.2% and long term growth at 2%), implying 5-years trading average of Thailand banks.The story:• Potential loan growth post-COVID with better quality• Strong recurring non-interest income amid Covid-19 crisis• Improving asset qualityRisks:• Higher NPLs that would cause higher provisions set aside• Prolong low interest rate would decrease NIM• Delay in vaccine roll-out

SCB: Largest Retail Loan Portfolio Amongst Big Banks