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

Star Petroleum Refining / Equity Bottom-Up

We initiate coverage of SPRC with a BUY rating and a 2020E target price of Bt11.60, derived from 1.3xPBV’20E, which represents a 13% premium to the Thailand energy average of 1.15x.The story:<ul>
<li>Superior GRM as a result of partnership with Chevron</li>
<li>To benefit from several turnaround projects including expansion</li>
<li>IMO regulation to support refinery margin in 2020E</li>
</ul>Risks:<ul>
<li>Raw material price fluctuation</li>
<li>Foreign currency exchange rate fluctuation</li>
<li>Unplanned shutdown of refinery</li>
</ul>

We initiate coverage of SPRC with a BUY rating and a 2020E target price of Bt11.60, derived from 1.3xPBV’20E, which represents a 13% premium to the Thailand energy average of 1.15x.The story:
Superior GRM as a result of partnership with Chevron
To benefit from several turnaround projects including expansion
IMO regulation to support refinery margin in 2020E
Risks:
Raw material price fluctuation
Foreign currency exchange rate fluctuation
Unplanned shutdown of refinery


Star Petroleum Refining

SPRC: Back to a Profitable Cycle in 2020