Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

i-Tail Corporation / Equity Capital Markets

<ul>
<li>I-Tail, an OEM in the wet pet food category, aims to raise around US$600m in its Thailand IPO. It is a subsidiary of <a href="https://www.smartkarma.com/entities/thai-union-group-pcl" target="_blank" data-smartkarma-citation="entities:161:1" rel="noopener">Thai Union Group (TU TB)</a>  .</li>
<li>As per ITC, it was the number two pet food company in Asia and in the top ten pet food companies globally. ITC expertise lies in fish-based wet pet food.</li>
<li>In our previous notes, we have looked at various aspects of the deal. In this note, we talk about its 3Q22 updates and run the deal through our ECM framework.</li>
</ul>


I-Tail, an OEM in the wet pet food category, aims to raise around US$600m in its Thailand IPO. It is a subsidiary of Thai Union Group (TU TB)  .
As per ITC, it was the number two pet food company in Asia and in the top ten pet food companies globally. ITC expertise lies in fish-based wet pet food.
In our previous notes, we have looked at various aspects of the deal. In this note, we talk about its 3Q22 updates and run the deal through our ECM framework.


I-Tail Corporation IPO - Blowout 3Q22, Revised Earnings, Updated Thoughts on Valuation

<ul>
<li>I-Tail, an OEM in the wet pet food category, aims to raise around US$500m in its Thailand IPO. It is a subsidiary of <a href="https://www.smartkarma.com/entities/thai-union-group-pcl" target="_blank" data-smartkarma-citation="entities:161:1" rel="noopener">Thai Union Group (TU TB)</a> .</li>
<li>As per ITC, it was the number two pet food company in Asia and in the top ten pet food companies globally. ITC expertise lies in fish-based wet pet food.</li>
<li>In our previous notes, we have looked at past performance, undertaken a peer comparison and spoken about valuation. In this note, we will add in its recently listed local peer.</li>
</ul>


I-Tail, an OEM in the wet pet food category, aims to raise around US$500m in its Thailand IPO. It is a subsidiary of Thai Union Group (TU TB) .
As per ITC, it was the number two pet food company in Asia and in the top ten pet food companies globally. ITC expertise lies in fish-based wet pet food.
In our previous notes, we have looked at past performance, undertaken a peer comparison and spoken about valuation. In this note, we will add in its recently listed local peer.


I-Tail Corporation Pre-IPO - Peer Comparison Update - Adding in Its Only Local Peer

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>We keep our BUY rating with a TP of Bt21.4, derived from 14xPE’23E. We recommend increasing position in ASIAN on expected brighter 2H22 outlook and onwards, supported by capacity expansion</li>
<li>Margin resilience was key to decent 2Q22 results ASIAN’s 2Q22 earnings posted at Bt264m, dropped 10%YoY but rose 7%QoQ, which was in-line with our forecast. Behind the QoQ growth </li>
<li>Brighter prospects in 2H22 Looking ahead,we see 2H22 earnings momentum on highway to growth,backed by capacity expansion in the pet food unit,which increased to 42,000t/pa (+17%QoQ) in the late 1H22</li>
</ul>


We keep our BUY rating with a TP of Bt21.4, derived from 14xPE’23E. We recommend increasing position in ASIAN on expected brighter 2H22 outlook and onwards, supported by capacity expansion
Margin resilience was key to decent 2Q22 results ASIAN’s 2Q22 earnings posted at Bt264m, dropped 10%YoY but rose 7%QoQ, which was in-line with our forecast. Behind the QoQ growth 
Brighter prospects in 2H22 Looking ahead,we see 2H22 earnings momentum on highway to growth,backed by capacity expansion in the pet food unit,which increased to 42,000t/pa (+17%QoQ) in the late 1H22


<ul>
<li>We maintain our BUY rating but roll over TP to 14xPE’23E(+0.5SD of its 5-yrs trading mean)at Bt21.4 or -7% from previous TP.We recommend to accumulate ASIAN on expected positive 2Q22 </li>
<li>Expect 2Q22 result to recover QoQ We expect 2Q22 core profit at Bt259m (-12%YoY, +5%QoQ). Despite expected 3%QoQ sales growth to Bt2.9bn,the QoQ growth in 2Q22 earnings will be driven </li>
<li>Profit momentum poised to further climb in 2H22 We expect 2H22 core profit to stride a firmer upward path on the back of capacity expansion effect.The pet food segment’s production </li>
</ul>


We maintain our BUY rating but roll over TP to 14xPE’23E(+0.5SD of its 5-yrs trading mean)at Bt21.4 or -7% from previous TP.We recommend to accumulate ASIAN on expected positive 2Q22 
Expect 2Q22 result to recover QoQ We expect 2Q22 core profit at Bt259m (-12%YoY, +5%QoQ). Despite expected 3%QoQ sales growth to Bt2.9bn,the QoQ growth in 2Q22 earnings will be driven 
Profit momentum poised to further climb in 2H22 We expect 2H22 core profit to stride a firmer upward path on the back of capacity expansion effect.The pet food segment’s production 


<ul>
<li>Maintain BUY rating with TP of B23.00 derived from 16xPE’22E, which is close to +1SD of 5-years trading average. Our rating reflects strong pet food growth outlook, attractive 3.8% yield</li>
<li>We foresee earnings momentum to improve QoQ in 2Q22, supported by better pet food business unit from new capacity, and further strengthen by Baht downtrend.</li>
<li>In our view, the new pet food capacity should gather pace in 2H22, upon better demand in light of favorable macro dynamics. Moreover</li>
</ul>


Maintain BUY rating with TP of B23.00 derived from 16xPE’22E, which is close to +1SD of 5-years trading average. Our rating reflects strong pet food growth outlook, attractive 3.8% yield
We foresee earnings momentum to improve QoQ in 2Q22, supported by better pet food business unit from new capacity, and further strengthen by Baht downtrend.
In our view, the new pet food capacity should gather pace in 2H22, upon better demand in light of favorable macro dynamics. Moreover


ASIAN: Pet Food Unit Continue to Be Key Growth Driver

Thailand

Asian Sea Corporation Public Company Limited manufactures, distributes, and exports processed frozen seafood and pet food, serving customers globally. The company offers a range of products including frozen shrimp, fish, and various wet and dry pet food products. It also provides cold storage services. Headquartered in Samut Sakhon, Thailand, the company was founded in 1964.

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Asian Sea (ASIAN TB)

I-Tail Corporation IPO - Blowout 3Q22, Revised Earnings, Updated Thoughts on Valuation

I-Tail, an OEM in the wet pet food category, aims to raise around US$600m in its Thailand IPO. It is a subsidiary of Thai Union Group. In this...

Sumeet Singh

I-Tail Corporation Pre-IPO - Peer Comparison Update - Adding in Its Only Local Peer

I-Tail, an OEM in the wet pet food category, aims to raise around US$500m in its Thailand IPO. It is a subsidiary of Thai Union Group (TU TB) .

Sumeet Singh

ASIAN : In-Line 2Q22 Result

We keep our BUY rating with a TP of Bt21.4, derived from 14xPE’23E. We recommend increasing position in ASIAN on expected brighter 2H22 outlook and...

Pi Securities PCL, Thailand

ASIAN : Picking up Steam in 2Q22

We maintain our BUY rating but roll over TP to 14xPE’23E (+0.5SD of its 5-yrs trading mean) at Bt21.4 or -7% from previous TP. We recommend to...

Pi Securities PCL, Thailand

ASIAN: Pet Food Unit Continue to Be Key Growth Driver

Maintain BUY rating with TP of B23.00 derived from 16xPE’22E,which is close to +1SD of 5-years trading average. Our rating reflects strong pet food...

Pi Securities PCL, Thailand

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