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 Expressway and Metro / Equity Bottom-Up

<ul>
<li>Maintain BUY recommendation for BEM with a target price of Bt9.50.We expect the company to report 2Q22 net profit at Bt577m,the highest level in the past 11 quarter, mainly supported</li>
<li>Strong recovery in earnings in2Q22 and 2H22 2Q22 Revenue shall be reported at Bt3.3bn (+36%YoY +6%QoQ) supported by solid rebound in daily average MRT ridership to 231k trips (+94%YoY +23%QoQ) </li>
<li>We anticipate average daily MRT ridership to recover substantially in 2H22 to around 310k trips by end of this year,the level last time we have seen in Nov’21. However, pre-COVID</li>
</ul>


Maintain BUY recommendation for BEM with a target price of Bt9.50.We expect the company to report 2Q22 net profit at Bt577m,the highest level in the past 11 quarter, mainly supported
Strong recovery in earnings in2Q22 and 2H22 2Q22 Revenue shall be reported at Bt3.3bn (+36%YoY +6%QoQ) supported by solid rebound in daily average MRT ridership to 231k trips (+94%YoY +23%QoQ) 
We anticipate average daily MRT ridership to recover substantially in 2H22 to around 310k trips by end of this year,the level last time we have seen in Nov’21. However, pre-COVID


BEM : Expect 2Q22 Earnings to Hit 11 Quarter High

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

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>HK reopening is debatable and seems to be very hard to predict as the Chinese government is keen to keep zero COVID stands although recent quarantine time reduction is positive. </li>
<li>The number of passengers remains weak although the shorter quarantine reduction could provide short-term relief to the share price. </li>
<li>Valuation looks undemanding compared to the peers although the outlook is more uncertain. Stay out for now. </li>
</ul>


HK reopening is debatable and seems to be very hard to predict as the Chinese government is keen to keep zero COVID stands although recent quarantine time reduction is positive. 
The number of passengers remains weak although the shorter quarantine reduction could provide short-term relief to the share price. 
Valuation looks undemanding compared to the peers although the outlook is more uncertain. Stay out for now. 


Thematic (Sector/Industry)

<ul>
<li>The reopening story in Thailand is here to stay as this insight brings some on-the-ground observation during the recent long weekend. </li>
<li>
<a href="https://www.smartkarma.com/entities/airports-of-thailand-pcl" target="_blank" data-smartkarma-citation="entities:239:1" rel="noopener">Airports of Thailand (AOT TB)</a> reported an increase in the number of overseas tourists arrival indicating the truthfulness of the tourism recovery in Thailand. </li>
<li>Other beneficiaries include <a href="https://www.smartkarma.com/entities/bangkok-expressway-and-metro-68c0c1b3-af0c-4380-a380-f3dc7ba5d5ac" target="_blank" data-smartkarma-citation="entities:22849:1" rel="noopener">Bangkok Expressway and Metro (BEM TB)</a> , <a href="https://www.smartkarma.com/entities/siam-wellness-group-pcl" target="_blank" data-smartkarma-citation="entities:3765:1" rel="noopener">Siam Wellness Group (SPA TB)</a> , and <a href="https://www.smartkarma.com/entities/thai-beverage-pcl" target="_blank" data-smartkarma-citation="entities:3656:1" rel="noopener">Thai Beverage (THBEV SP)</a> .</li>
</ul>


The reopening story in Thailand is here to stay as this insight brings some on-the-ground observation during the recent long weekend. 

Airports of Thailand (AOT TB) reported an increase in the number of overseas tourists arrival indicating the truthfulness of the tourism recovery in Thailand. 
Other beneficiaries include Bangkok Expressway and Metro (BEM TB) , Siam Wellness Group (SPA TB) , and Thai Beverage (THBEV SP) .


Thailand Reopening: Tourist Traffic Increase Beneficiaries

<ul>
<li>We expect the company to report net profit of Bt400m in 1Q22. (+1%QoQ+31%YoY), the highest level in the past five quarters.YoY expansion will be due to effective operating cost management</li>
<li>Expect daily ridership to reach 70% of pre-COVID19 level by 3Q22, under assumption that there will be no major restriction measures induced by the virus outbreak. Furthermore, we expect ridership </li>
<li>Earlier-Than-Expected bidding for Orange line will be the re-rating catalyst (previously expected to take place within 1H22). We estimate upsides from this project at Bt1.90 per share.</li>
</ul>


We expect the company to report net profit of Bt400m in 1Q22. (+1%QoQ+31%YoY), the highest level in the past five quarters.YoY expansion will be due to effective operating cost management
Expect daily ridership to reach 70% of pre-COVID19 level by 3Q22, under assumption that there will be no major restriction measures induced by the virus outbreak. Furthermore, we expect ridership 
Earlier-Than-Expected bidding for Orange line will be the re-rating catalyst (previously expected to take place within 1H22). We estimate upsides from this project at Bt1.90 per share.


BEM: Expect to Report Five-Quarter High Net Profit in 1Q22

<ul>
<li>We maintain BEM with a BUY rating and a target price of Bt10.30 derived from SOTP methodology, which is equivalent to 51.5xPE’22E.</li>
<li>We expect the company to report net profit of Bt290m in 4Q21. (+168%QoQ -49%YoY), the highest level in the past three quarters.</li>
<li>YoY contraction will be mainly due to impact from 3rd wave of COVID-19 widespread, which trimmed down average daily toll traffic to 984k trips/day(-13%YoY +47%QoQ) and MRT ridership to 175k </li>
</ul>


We maintain BEM with a BUY rating and a target price of Bt10.30 derived from SOTP methodology, which is equivalent to 51.5xPE’22E.
We expect the company to report net profit of Bt290m in 4Q21. (+168%QoQ -49%YoY), the highest level in the past three quarters.
YoY contraction will be mainly due to impact from 3rd wave of COVID-19 widespread, which trimmed down average daily toll traffic to 984k trips/day(-13%YoY +47%QoQ) and MRT ridership to 175k 


BEM: Expect 4Q21 Earnings to Recover Strongly and Onward to 2022

Thailand

Bangkok Expressway and Metro PCL is a transportation company. The Company combines toll and metro line networks. Bangkok Expressway and Metro is based in Thailand.

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Bangkok Expressway and Metro (BEM TB)

BEM : Expect 2Q22 Earnings to Hit 11 Quarter High

Maintain BUY recommendation for BEM with a target price of Bt9.50. We expect the company to report 2Q22 net profit at Bt577m, the highest level in...

Pi Securities PCL, Thailand

MTR (66): Open or Closed?

The Chinese government is to reduce the quarantine period may bring some positive sentiment to MTR but the border between China and HK remains...

Henry Soediarko

Thailand Reopening: Tourist Traffic Increase Beneficiaries

Chinese zero COVID policy dampens the growth and recovery story, but the travel recovery in South East Asia in Thailand is favored as a holiday...

Henry Soediarko

BEM: Expect to Report Five-Quarter High Net Profit in 1Q22

We expect the company to report net profit of Bt400m in 1Q22. (+1%QoQ +31%YoY), the highest level in the past five quarters. YoY expansion will be...

Pi Securities PCL, Thailand

BEM: Expect 4Q21 Earnings to Recover Strongly and Onward to 2022

We maintain BEM with a BUY rating and a target price of Bt10.30 derived from SOTP methodology, which is equivalent to 51.5xPE’22E.

Pi Securities PCL, Thailand

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