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

3BB Internet Infrastructure Fund / Equity Bottom-Up

3BB Internet Infrastructure Fund (3BBIF TB)

<ul>
<li>Maintain HOLD rating with TP of Bt8.80 derived from DCF(WACC=8.02%, g=0%). JASIF’s 2Q22 core profit was Bt2.2bn(Flat YoY, Flat QoQ)due to the flat revenue based on the contract with TTTBB.</li>
<li>2Q22 core profit remains flat in-line with our expectation   2Q22 net profit was Bt1.4b (-32% YoY, -13% QoQ) due to asset revaluation losses.</li>
<li>Excluding unrealized losses from asset revaluation of Bt800m,2Q22 core profit remained flat both YoY and QoQ at Bt2.2bn,in line with our forecast due to flat YoY and QoQ revenue atBt2.5bn.</li>
</ul>


Maintain HOLD rating with TP of Bt8.80 derived from DCF(WACC=8.02%, g=0%). JASIF’s 2Q22 core profit was Bt2.2bn(Flat YoY, Flat QoQ)due to the flat revenue based on the contract with TTTBB.
2Q22 core profit remains flat in-line with our expectation   2Q22 net profit was Bt1.4b (-32% YoY, -13% QoQ) due to asset revaluation losses.
Excluding unrealized losses from asset revaluation of Bt800m,2Q22 core profit remained flat both YoY and QoQ at Bt2.2bn,in line with our forecast due to flat YoY and QoQ revenue atBt2.5bn.


Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Silchester's effort to raise awareness in <a href="https://www.smartkarma.com/entities/chugoku-bank-ltd" target="_blank" data-smartkarma-citation="entities:11177:1" rel="noopener">Chugoku Bank (8382 JP)</a> failed. Still, if you had a basket of regional bank longs and shorts, Chugoku would be in the short basket. </li>
<li>Dye &amp; Durham reloads a higher Offer after <a href="https://www.smartkarma.com/entities/link-administration-holdings-ltd" target="_blank" data-smartkarma-citation="entities:970:1" rel="noopener">Link Administration (LNK AU)</a>'s rejection. This probably still needs a (small) bump in terms to get up. </li>
<li>
<a href="https://www.smartkarma.com/entities/rakuten-inc" target="_blank" data-smartkarma-citation="entities:31:1" rel="noopener">Rakuten Inc (4755 JP)</a>is trading at a significant discount to its SOTP. A part of its Fintech segment (Rakuten Bank) could be worth ~50% of total market cap.</li>
</ul>


Silchester's effort to raise awareness in Chugoku Bank (8382 JP) failed. Still, if you had a basket of regional bank longs and shorts, Chugoku would be in the short basket. 
Dye &amp; Durham reloads a higher Offer after Link Administration (LNK AU)'s rejection. This probably still needs a (small) bump in terms to get up. 

Rakuten Inc (4755 JP)is trading at a significant discount to its SOTP. A part of its Fintech segment (Rakuten Bank) could be worth ~50% of total market cap.


Last Week in Event SPACE: Chugoku Bank, Link Admin, Rakuten, Tassal, Pipedo

<ul>
<li>There are 45 - mostly firm - transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.</li>
<li>One new deal this week: <a href="https://www.smartkarma.com/entities/pipedo-hd-inc" target="_blank" data-smartkarma-citation="entities:26982:1" rel="noopener">Pipedo HD Inc (3919 JP)</a>'s MBO</li>
<li>Key updates took place for: <a href="https://www.smartkarma.com/entities/link-administration-holdings-ltd" target="_blank" data-smartkarma-citation="entities:970:1" rel="noopener">Link Administration (LNK AU)</a>, <a href="https://www.smartkarma.com/entities/tassal-group-ltd" target="_blank" data-smartkarma-citation="entities:16234:1" rel="noopener">Tassal (TGR AU)</a>,<a href="https://www.smartkarma.com/entities/giordano-international-ltd" target="_blank" data-smartkarma-citation="entities:13899:1" rel="noopener">Giordano (709 HK)</a><a href="https://www.smartkarma.com/entities/hwa-hong-corp-ltd" target="_blank" data-smartkarma-citation="entities:6648:1" rel="noopener">Hwa Hong (HWAH SP)</a>, <a href="https://www.smartkarma.com/entities/sph-reit" target="_blank" data-smartkarma-citation="entities:5994:1" rel="noopener">SPH REIT (SPHREIT SP)</a>, and <a href="https://www.smartkarma.com/entities/mapletree-commercial-trust" target="_blank" data-smartkarma-citation="entities:106:1" rel="noopener">Mapletree Commercial Trust (MCT SP)</a>.</li>
</ul>


There are 45 - mostly firm - transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
One new deal this week: Pipedo HD Inc (3919 JP)'s MBO
Key updates took place for: Link Administration (LNK AU), Tassal (TGR AU),Giordano (709 HK)Hwa Hong (HWAH SP), SPH REIT (SPHREIT SP), and Mapletree Commercial Trust (MCT SP).


Asia-Pac Weekly Risk Arb Wrap: Pipedo, Link Administration, Tassal, Giordano, Hwa Hong, SPH REIT

<ul>
<li>Downgrade to HOLD fom BUY and cut TP by 28% to Bt8.80 derived form DCF (WACC=8.02%, g=0%) to factor in significant reduction in revenue and dividend from 2023 </li>
<li>A non-attractive deal for JASIF shareholders: On July 4th 2022, JAS informed SET that, ADVANC is considering purchase of 99.99% of TTTBB and 19% of total JASIF units at Bt8.5 </li>
<li>In that case,The Amended Rental Assurance agreement that generates a superior rental rate of770/km/month will be cancelled which will cause a dip of 30%in the revenue generation of JASIF in2023onwards.</li>
</ul>


Downgrade to HOLD fom BUY and cut TP by 28% to Bt8.80 derived form DCF (WACC=8.02%, g=0%) to factor in significant reduction in revenue and dividend from 2023 
A non-attractive deal for JASIF shareholders: On July 4th 2022, JAS informed SET that, ADVANC is considering purchase of 99.99% of TTTBB and 19% of total JASIF units at Bt8.5 
In that case,The Amended Rental Assurance agreement that generates a superior rental rate of770/km/month will be cancelled which will cause a dip of 30%in the revenue generation of JASIF in2023onwards.


JASIF : Contract Cancellation Will Affect Dividend Payment

<ul>
<li>
<a href="https://www.smartkarma.com/entities/advanced-info-service-pcl" target="_blank" data-smartkarma-citation="entities:947:1" rel="noopener">Advanced Info Service (ADVANC TB)</a> intends to acquire <a href="https://www.smartkarma.com/entities/jasmine-international-pcl" target="_blank" data-smartkarma-citation="entities:949:1" rel="noopener">Jasmine International PCL (JAS TB)</a> broadband ops (TTTBB) plus a 19% stake in <a href="https://www.smartkarma.com/entities/jasmine-broadband-internet-infrastructure-fund" target="_blank" data-smartkarma-citation="entities:86:1" rel="noopener">Jasmine Broadband Internet Infrastructure Fund (JASIF TB)</a> from JAS.</li>
<li>AIS will pay Bt 19.5bn for TTTBB and Bt 12.9bn for 19% of JASIF, or Bt 32.4bn (US$908mn) all in. The acquisition will be funded by debt.</li>
<li>The transactions, which are subject to NBTC approval, follow the ongoing regulatory process for <a href="https://www.smartkarma.com/entities/true-corp-pcl" target="_blank" data-smartkarma-citation="entities:8:1" rel="noopener">True (TRUE TB)</a> / <a href="https://www.smartkarma.com/entities/total-access-communication" target="_blank" data-smartkarma-citation="entities:948:1" rel="noopener">Total Access Communication (DTAC TB)</a>'s merger.  True is Thailand's largest broadband player. </li>
</ul>



Advanced Info Service (ADVANC TB) intends to acquire Jasmine International PCL (JAS TB) broadband ops (TTTBB) plus a 19% stake in Jasmine Broadband Internet Infrastructure Fund (JASIF TB) from JAS.
AIS will pay Bt 19.5bn for TTTBB and Bt 12.9bn for 19% of JASIF, or Bt 32.4bn (US$908mn) all in. The acquisition will be funded by debt.
The transactions, which are subject to NBTC approval, follow the ongoing regulatory process for True (TRUE TB) / Total Access Communication (DTAC TB)'s merger.  True is Thailand's largest broadband player. 


Jasmine Acquisition To Expand Advanced's Broadband Footprint

Thailand

3BB Internet Infrastructure Fund operates as a closed-end infrastructure fund. The Company invests primarily in the telecommunication network infrastructure projects. 3BB Internet Infrastructure Fund serves clients in Thailand.

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3BB Internet Infrastructure Fund (3BBIF TB)

JASIF : 2Q22 Core Profit Remains Flat

Maintain HOLD rating with TP of Bt8.80 derived from DCF (WACC=8.02%, g=0%). JASIF’s 2Q22 core profit was Bt2.2bn (Flat YoY, Flat QoQ) due to the...

Pi Securities PCL, Thailand

Last Week in Event SPACE: Chugoku Bank, Link Admin, Rakuten, Tassal, Pipedo

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

Asia-Pac Weekly Risk Arb Wrap: Pipedo, Link Administration, Tassal, Giordano, Hwa Hong, SPH REIT

This insight provides a summary of gross/annualised spreads (on deals discussed on Smartkarma) across Asia-Pacific as at the last trading date, and...

David Blennerhassett

JASIF : Contract Cancellation Will Affect Dividend Payment

Downgrade to HOLD fom BUY and cut TP by 28% to Bt8.80 derived form DCF (WACC=8.02%, g=0%) to factor in significant reduction in revenue and...

Pi Securities PCL, Thailand

Jasmine Acquisition To Expand Advanced's Broadband Footprint

The spotlight has been on DTAC/True for most of this year. AIS is Thailand's largest mobile phone operator, and is looking to boost its subscriber...

David Blennerhassett

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