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

Sahamitr Pressure Container / Equity Bottom-Up

We initiate coverage on SMPC with a BUY rating based on a target price of Bt18.0 and derived from the PE ratio of the Asia ex-JP Materials sector, implying a 12.2x PE’18E.The story:<ul><li>Margin recovering to normalized level in 2H17</li><li>Plenty of growth ahead in Asia-Pacific and Africa</li><li>Strong track record of consistent production expansion</li><li>SMPC will gain from world class customers’ market expansion</li></ul>Risks:  (1) Raw-material procurement(2) Tariff barriers in emerging markets(3) Industry threat of backward integration(4) Currency risk

We initiate coverage on SMPC with a BUY rating based on a target price of Bt18.0 and derived from the PE ratio of the Asia ex-JP Materials sector, implying a 12.2x PE’18E.The story:Margin recovering to normalized level in 2H17Plenty of growth ahead in Asia-Pacific and AfricaStrong track record of consistent production expansionSMPC will gain from world class customers’ market expansionRisks:  (1) Raw-material procurement(2) Tariff barriers in emerging markets(3) Industry threat of backward integration(4) Currency risk

SMPC: Top-Three of Global LPG Cylinder Manufacturers