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 initiate coverage on TWPC with a BUY rating and a 2018E target price of Bt12.4, based on i) business valuation at Bt11.6, derived from 15.0x PER,  and ii) net cash at Bt0.8.The story:<ul><li>Proven impressive competitor for big export destinations</li><li>Killing two birds with one stone in CLMV</li><li>Potential upside from M&amp;A due to large idle cash reserve</li><li>Expect a 22% CAGR for EPS in 2018-19E</li></ul>Risks:<ul><li>Fluctuations in raw-material prices</li><li>Appreciation of the baht</li></ul>

We initiate coverage on TWPC with a BUY rating and a 2018E target price of Bt12.4, based on i) business valuation at Bt11.6, derived from 15.0x PER,  and ii) net cash at Bt0.8.The story:Proven impressive competitor for big export destinationsKilling two birds with one stone in CLMVPotential upside from M&amp;A due to large idle cash reserveExpect a 22% CAGR for EPS in 2018-19ERisks:Fluctuations in raw-material pricesAppreciation of the baht 

TWPC: Value Starch Maker Shows Decent Growth Potential

Thai Wah PCL

TWPC: Value Starch Maker Shows Decent Growth Potential