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

<p><strong>We initiate coverage of SPA with a BUY rating and a 2020E target price of Bt19.1, derived from 37xPE’20E, implying 1.6xPEG’20E and equal to its one- year trading average.</strong></p><p>The story:</p><div>•Continuing branch expansion to drive growth</div><div>•Let’s Relax is its flagship brand to expand market share</div><div>•Popularity of Thailand as a wellness tourism destination</div><div>•Upside from margin expansion in the future</div><p></p><p>Risks:</p><div>•Intense competition in the spa industry</div><div>•Fluctuations in the tourism industry</div><div>•Shortage of therapists</div>

We initiate coverage of SPA with a BUY rating and a 2020E target price of Bt19.1, derived from 37xPE’20E, implying 1.6xPEG’20E and equal to its one- year trading average.The story:•Continuing branch expansion to drive growth•Let’s Relax is its flagship brand to expand market share•Popularity of Thailand as a wellness tourism destination•Upside from margin expansion in the futureRisks:•Intense competition in the spa industry•Fluctuations in the tourism industry•Shortage of therapists

Siam Wellness Group

SPA: Largest Spa Chain in Thailand