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>Maintain our BUY call with a target price of Bt162.Our BUY call reflects steady earnings growth, resilient balance sheet,and undemanding valuation. Our valuation is derived from the Gordon Growth Model </li>
<li>Net profit in 1Q22 came in at Bt7.1bn, up 3% YoY(+13% QoQ)and 9% lower than expectations on lower gain from financial instruments designed at fair value through profit or loss.</li>
<li>Asset quality was resilient. The NPL ratio minimally increased to 3.3% and the coverage ratio remained high at 229% against uncertainty.</li>
</ul>


Maintain our BUY call with a target price of Bt162.Our BUY call reflects steady earnings growth, resilient balance sheet,and undemanding valuation. Our valuation is derived from the Gordon Growth Model 
Net profit in 1Q22 came in at Bt7.1bn, up 3% YoY(+13% QoQ)and 9% lower than expectations on lower gain from financial instruments designed at fair value through profit or loss.
Asset quality was resilient. The NPL ratio minimally increased to 3.3% and the coverage ratio remained high at 229% against uncertainty.


<ul>
<li>Maintain our BUY call with a target price of Bt162. Our valuation is derived from the Gordon Growth Model (ROE 6.6%,growth 2%), implying 0.6x PBV’22E, -1SD to its five-year means. </li>
<li>With its focus on corporate and international loans, BBL will likely suffer fewer impacts when compared with its competitor from elevated household debts and a conflict between Russia and Ukraine.</li>
<li>Net profit will continue to rise further in 2022-23, supported by solid fundamentals and an improvement in economic activity.</li>
</ul>


Maintain our BUY call with a target price of Bt162. Our valuation is derived from the Gordon Growth Model (ROE 6.6%,growth 2%), implying 0.6x PBV’22E, -1SD to its five-year means. 
With its focus on corporate and international loans, BBL will likely suffer fewer impacts when compared with its competitor from elevated household debts and a conflict between Russia and Ukraine.
Net profit will continue to rise further in 2022-23, supported by solid fundamentals and an improvement in economic activity.


ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN Insight Provider

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

<ul>
<li>
<a href="https://www.smartkarma.com/entities/astra-international-tbk-pt" target="_blank" data-smartkarma-citation="entities:46:1" rel="noopener">Astra International (ASII IJ)</a> held an informative post-results analyst briefing that provided a glimpse into its future plans, with capex set to double in 2022 with a war chest ready.</li>
<li>Other than investing in expanding existing businesses and in areas such as EVs, <a href="https://www.smartkarma.com/entities/astra-international-tbk-pt" target="_blank" data-smartkarma-citation="entities:46:1" rel="noopener">Astra</a> also has a pipeline of deals related to the growing digital ecosystem in Indonesia. </li>
<li>
<a href="https://www.smartkarma.com/entities/astra-international-tbk-pt" target="_blank" data-smartkarma-citation="entities:46:1" rel="noopener">Astra International (ASII IJ)</a> is a proxy for the recovery in Indonesia's economy through cars, motorbikes, and commodities but has an emerging digital and sustainability edge plus reasonable valuations.</li>
</ul>



Astra International (ASII IJ) held an informative post-results analyst briefing that provided a glimpse into its future plans, with capex set to double in 2022 with a war chest ready.
Other than investing in expanding existing businesses and in areas such as EVs, Astra also has a pipeline of deals related to the growing digital ecosystem in Indonesia. 

Astra International (ASII IJ) is a proxy for the recovery in Indonesia's economy through cars, motorbikes, and commodities but has an emerging digital and sustainability edge plus reasonable valuations.


Astra International (ASII IJ) - A Glimpse into the Future

Cross Asset Strategy

<ul>
<li>The Week That Was in ASEAN@Smartkarma is filled with an eclectic mix of differentiated, substantive, and actionable insights, macro and equity bottom-up, from across South East Asia.</li>
<li>The past week saw insights on <a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" data-smartkarma-citation="entities:8509:1" rel="noopener">Sea Ltd (SE US)</a> and <a href="https://www.smartkarma.com/entities/grab-holdings-inc" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab (GRAB US)</a> post results along with an interesting trade idea on <a href="https://www.smartkarma.com/entities/bangkok-bank-public-co-ltd" target="_blank" data-smartkarma-citation="entities:213:1" rel="noopener">Bangkok Bank Public (BBL TB)</a>.</li>
<li>We also had two insights on <a href="https://www.smartkarma.com/entities/farm-fresh-berhad" target="_blank" data-smartkarma-citation="entities:34617:1" rel="noopener">Farm Fresh Berhad (FF MY)</a> IPO, commentary on <a href="https://www.smartkarma.com/entities/singapore-press-holdings-limited" target="_blank" data-smartkarma-citation="entities:9952:1" rel="noopener">Singapore Press Holdings (SPH SP)</a> plans to delist plus some other new-economy developments.</li>
</ul>


The Week That Was in ASEAN@Smartkarma is filled with an eclectic mix of differentiated, substantive, and actionable insights, macro and equity bottom-up, from across South East Asia.
The past week saw insights on Sea Ltd (SE US) and Grab (GRAB US) post results along with an interesting trade idea on Bangkok Bank Public (BBL TB).
We also had two insights on Farm Fresh Berhad (FF MY) IPO, commentary on Singapore Press Holdings (SPH SP) plans to delist plus some other new-economy developments.


The Week That Was in ASEAN @Smartkarma - Rough for Sea Ltd, Grab's Tumble, and Farm Fresh IPO

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/bangkok-bank-public-co-ltd" target="_blank" data-smartkarma-citation="entities:213:1" rel="noopener">Bangkok Bank Public</a> has underperformed <a href="https://www.smartkarma.com/entities/kasikornbank-pcl" target="_blank" data-smartkarma-citation="entities:293:1" rel="noopener">Kasikornbank PCL</a> over the short-term and over the last year as well. The price ratio is now trading at the low end of the recent range.</li>
<li>The number of NVDRs issued on <a href="https://www.smartkarma.com/entities/bangkok-bank-public-co-ltd" target="_blank" data-smartkarma-citation="entities:213:1" rel="noopener">Bangkok Bank Public (BBL TB)</a> have continued to decrease while increasing on <a href="https://www.smartkarma.com/entities/kasikornbank-pcl" target="_blank" data-smartkarma-citation="entities:293:1" rel="noopener">Kasikornbank PCL (KBANK TB)</a>. </li>
<li>
<a href="https://www.smartkarma.com/entities/bangkok-bank-public-co-ltd" target="_blank" data-smartkarma-citation="entities:213:1" rel="noopener">Bangkok Bank Public (BBL TB)</a> trades cheaper than <a href="https://www.smartkarma.com/entities/kasikornbank-pcl" target="_blank" data-smartkarma-citation="entities:293:1" rel="noopener">Kasikornbank PCL (KBANK TB)</a> and there could outperform in the short-term.</li>
</ul>



Bangkok Bank Public has underperformed Kasikornbank PCL over the short-term and over the last year as well. The price ratio is now trading at the low end of the recent range.
The number of NVDRs issued on Bangkok Bank Public (BBL TB) have continued to decrease while increasing on Kasikornbank PCL (KBANK TB). 

Bangkok Bank Public (BBL TB) trades cheaper than Kasikornbank PCL (KBANK TB) and there could outperform in the short-term.


Thailand

Bangkok Bank Public Company Limited provides various banking and financial services including commercial, consumer, credit card, and mortgage lending, international trade financing, investment banking, and securities services.

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Bangkok Bank (BBL/F TB)

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Pi Securities PCL, Thailand

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Astra International (ASII IJ) - A Glimpse into the Future

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Angus Mackintosh

The Week That Was in ASEAN @Smartkarma - Rough for Sea Ltd, Grab's Tumble, and Farm Fresh IPO

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Angus Mackintosh

BBL/KBANK: Time for a Bounce

BBL TB has underperformed KBANK TB and the price ratio is currently trading at the lower end of the recent range. There could be a short-term...

Brian Freitas

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