TOA : Promising 4Q22 Outlook but Limited Upside

TOA: Expect Earnings to Recover Slowly in 2022

TOA: Squeeze Margin Pressured 1H22 Earnings

TOA: Recovering Demand for Decorative Paint Drive 4Q21 Earnings

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>Maintain BUY recommendation for TOA and roll over target price to 1H23 at Bt35 (Previous TP of Bt32). Excluding extraordinary items, core profit was at Bt473m (-13%YoY, +6%QoQ)</li>
<li>2Q22 earnings recover QoQ as expected    TOA’s 2Q22 net profit came in at Bt368m (-32%YoY, -10%QoQ). 1H22 result accounted for 48% of our 2022E.</li>
<li>2Q22 revenue hit a record high at Bt5.2bn (+16%YoY, +5%QoQ). Most of all decorative sales growth was supported by 1) an increase in average products selling price</li>
</ul>


Maintain BUY recommendation for TOA and roll over target price to 1H23 at Bt35 (Previous TP of Bt32). Excluding extraordinary items, core profit was at Bt473m (-13%YoY, +6%QoQ)
2Q22 earnings recover QoQ as expected    TOA’s 2Q22 net profit came in at Bt368m (-32%YoY, -10%QoQ). 1H22 result accounted for 48% of our 2022E.
2Q22 revenue hit a record high at Bt5.2bn (+16%YoY, +5%QoQ). Most of all decorative sales growth was supported by 1) an increase in average products selling price


TOA : Rising Raw Material Cost Already in the Price

TOA Paint (Thailand)

TOA : Rising Raw Material Cost Already in the Price