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 downgraded TOG with a HOLD rating and a new target price of Bt5.20 (previous target price: 9.80), based on 16.1xPE’1H19E, which is the average of global peers in Health Care sector.The story:<ul>
<li>We revised down earnings due to lower than expected in sales and margins .</li>
<li>Unexpectedly large cost overrun in production and sales channel expansion.</li>
<li>Announced interim dividend payment at Bt0.06 or equivalent to 1.2% of yield</li>
</ul>Risks:<ul>
<li>Stronger Baht vs major foreign currencies such US dollar and Euro causes lower income in Baht terms as the main reporting currency is Baht.</li>
<li>Higher pricing pressure from customers than expected due to intensive competition among global competitors</li>
</ul>Please refer to our recent report on TOG: <a href="https://www.smartkarma.com/insights/tog-thai-optical-lens-producer-eyes-niche-domination" target="_blank">TOG: Thai Optical Lens Producer Eyes Niche Domination</a>

We downgraded TOG with a HOLD rating and a new target price of Bt5.20 (previous target price: 9.80), based on 16.1xPE’1H19E, which is the average of global peers in Health Care sector.The story:
We revised down earnings due to lower than expected in sales and margins .
Unexpectedly large cost overrun in production and sales channel expansion.
Announced interim dividend payment at Bt0.06 or equivalent to 1.2% of yield
Risks:
Stronger Baht vs major foreign currencies such US dollar and Euro causes lower income in Baht terms as the main reporting currency is Baht.
Higher pricing pressure from customers than expected due to intensive competition among global competitors
Please refer to our recent report on TOG: TOG: Thai Optical Lens Producer Eyes Niche Domination

TOG: Silver Lining Is Still Gloomy at Least in 2018

Thai Optical Group

TOG: Silver Lining Is Still Gloomy at Least in 2018