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, raised 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 the company’s past performance, undertaken a peer comparison and spoken about valuation. In this note, we will talk about the trading dynamics</li>
</ul>


I-Tail, an OEM in the wet pet food category, raised 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 the company’s past performance, undertaken a peer comparison and spoken about valuation. In this note, we will talk about the trading dynamics


I-Tail Corporation IPO Trading - Should Be Able to Provide Some Holiday Cheer

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

Bangkok Aviation Fuel Services / Equity Bottom-Up

<ul>
<li>We expect BAFS to book net profit for the first time since pandemic in 4Q22,supported by aviation fuel services volume that expected to reach above 65%of pre-COVID level. Looking beyond2023</li>
<li>Fuel services volume reached break-even point BAFS reported 3Q22 net loss at Bt43m compared with Bt120m loss in 2Q22 and Bt199m loss in 3Q21. The least loss since pandemic</li>
<li>Gross profit margin expanded to ten-quarter high at 31.0%,thanks to benefit from high operating leverage.SG&amp;A to sales ratio also decreased to ten-quarter low at 23.1% due to the same reason.</li>
</ul>


We expect BAFS to book net profit for the first time since pandemic in 4Q22,supported by aviation fuel services volume that expected to reach above 65%of pre-COVID level. Looking beyond2023
Fuel services volume reached break-even point BAFS reported 3Q22 net loss at Bt43m compared with Bt120m loss in 2Q22 and Bt199m loss in 3Q21. The least loss since pandemic
Gross profit margin expanded to ten-quarter high at 31.0%,thanks to benefit from high operating leverage.SG&amp;A to sales ratio also decreased to ten-quarter low at 23.1% due to the same reason.


BAFS : Expect Solid Recovery in Earnings in 4Q22 and Throughout 2023

<ul>
<li>I-Tail Corporation, an original equipment manufacturer (OEM) in the wet pet food category, aims to list in Thailand in 4Q22. ITC 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 the company’s past performance. In this note, we undertake a peer comparison.</li>
</ul>


I-Tail Corporation, an original equipment manufacturer (OEM) in the wet pet food category, aims to list in Thailand in 4Q22. ITC 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 the company’s past performance. In this note, we undertake a peer comparison.


I-Tail Corporation Pre-IPO - Peer Comparison

<ul>
<li>Maintain BUY recommendation for BAFS but cut target price to Bt33.0 (Previous TP: 34.0) after earnings downgrade. We expect profitable quarter to postpone to 4Q22, from previous forecast in 3Q22</li>
<li>Significant improvement in core earnings BAFS reported 2Q22 net loss at Bt120m compared with Bt77m loss in 1Q22 and Bt175m loss in 2Q21.</li>
<li>QoQ contraction in earnings was due to dividend income recognition worth Bt50m from power plant business in Japan in 1Q22 (acquired in 4Q21). YoY improvement supported by aviation fuel volume </li>
</ul>


Maintain BUY recommendation for BAFS but cut target price to Bt33.0 (Previous TP: 34.0) after earnings downgrade. We expect profitable quarter to postpone to 4Q22, from previous forecast in 3Q22
Significant improvement in core earnings BAFS reported 2Q22 net loss at Bt120m compared with Bt77m loss in 1Q22 and Bt175m loss in 2Q21.
QoQ contraction in earnings was due to dividend income recognition worth Bt50m from power plant business in Japan in 1Q22 (acquired in 4Q21). YoY improvement supported by aviation fuel volume 


BAFS : Core Business Entered Recovery Phase

Head of Research, Krungthai XSpring

Waraporn Wiboonkanarak

Head of Research

A full service Thai brokerage

Krungthai XSpring

Krungthai XSpring is a full service broker. The company provides a wide range of investment services such as Securities Brokerage, Derivative Agent Business, Securities Borrowing and Lending, Securities Trading, Underwriting, Financial Advisory, Wealth Advisory, Private Fund Management and International Markets Securities Trading. 

In terms of credibility, Fitch Ratings has assigned Krunghtai XSpring a long-term rating of AA- and a national short-term rating of F1+ with stable outlook.

<div><div><div><div><ul><li>Statistics trending up, with the aviation fuel volume target at 3,290mn liters in 2022E to be highly achievable</li><li>Fuel volume throughput target at NFPT unchanged at 506mn liters in 2022E, with the near 2,000mn liter level the breakeven</li><li>Plans for Capex of Bt1.9bn in 2022-23E at a maximum, mostly earmarked for 2023E and at a manageable level</li></ul></div></div></div></div>

Statistics trending up, with the aviation fuel volume target at 3,290mn liters in 2022E to be highly achievableFuel volume throughput target at NFPT unchanged at 506mn liters in 2022E, with the near 2,000mn liter level the breakevenPlans for Capex of Bt1.9bn in 2022-23E at a maximum, mostly earmarked for 2023E and at a manageable level

Bangkok Aviation Fuel Services BAFS - Earnings Recovery on Pace

Thailand

Bangkok Aviation Fuel Services Public Company Limited (BAFS) provides aviation fuel storage, hydrant systems, and aircraft refueling services at several Thai airports, including Don Mueang and Suvarnabhumi. The company also engages in fuel pipeline transportation, and electricity generation and distribution from solar power. BAFS was established in 1983 and is headquartered in Bangkok, Thailand.

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Bangkok Aviation Fuel Services (BAFS TB)

I-Tail Corporation IPO Trading - Should Be Able to Provide Some Holiday Cheer

I-Tail, an OEM in the wet pet food category, raised around US$600m in its Thailand IPO. It is a subsidiary of Thai Union Group (TU TB).

Sumeet Singh

BAFS : Expect Solid Recovery in Earnings in 4Q22 and Throughout 2023

We expect BAFS to book net profit for the first time since pandemic in 4Q22, supported by aviation fuel services volume that expected to reach...

Pi Securities PCL, Thailand

I-Tail Corporation Pre-IPO - Peer Comparison

I-Tail Corporation, an OEM in the wet pet food category, aims to list in Thailand in 4Q22. ITC is a subsidiary of Thai Union Group. In this note,...

Sumeet Singh

BAFS : Core Business Entered Recovery Phase

Maintain BUY recommendation for BAFS but cut target price to Bt33.0 (Previous TP: 34.0) after earnings downgrade. We expect profitable quarter to...

Pi Securities PCL, Thailand

Bangkok Aviation Fuel Services BAFS - Earnings Recovery on Pace

Fuel volume throughput target at NFPT unchanged at 506mn liters in 2022E, with the near 2,000mn liter level the breakeven

Krungthai XSpring

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