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 new target price of Bt11.40 (Previous TP: Bt9.90) after we incorporate value from orange line project into our valuation. We expect the company </li>
<li>Expect solid profit recovery in 3Q22 and onwards Expect BEM’ revenue in 3Q22 to touch Bt3.6bn (+69%YoY +12%QoQ) supported by solid rebound in daily average MRT ridership to 313k trips </li>
<li>Gross profit margin is assumed to expand to three-quarter high at 42% thanks to benefit from high operating leverage,which should help absorb the impact from an increase in MRT revenue </li>
</ul>


Maintain BUY recommendation for BEM with a new target price of Bt11.40 (Previous TP: Bt9.90) after we incorporate value from orange line project into our valuation. We expect the company 
Expect solid profit recovery in 3Q22 and onwards Expect BEM’ revenue in 3Q22 to touch Bt3.6bn (+69%YoY +12%QoQ) supported by solid rebound in daily average MRT ridership to 313k trips 
Gross profit margin is assumed to expand to three-quarter high at 42% thanks to benefit from high operating leverage,which should help absorb the impact from an increase in MRT revenue 


BEM : Expect 3Q22 Earnings to Hit 12 Quarter High

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.

<ul><li>We add BEM to our portfolio, as the stock should benefit from the increases in ridership in the MRT system and traffic volume following the resumption of economic activities.</li><li>The consensus estimate calls for 2022E earnings of Bt2,496mn, growing 247.12% YoY.</li><li>Meanwhile, the consensus views that the potential for the firm to win the bidding contest for the Orange Line mass transit project (western section), which will take place in 1H23, will pose upside to the share price of around Bt1-1.5/share as the auction date approaches.</li></ul>

We add BEM to our portfolio, as the stock should benefit from the increases in ridership in the MRT system and traffic volume following the resumption of economic activities.The consensus estimate calls for 2022E earnings of Bt2,496mn, growing 247.12% YoY.Meanwhile, the consensus views that the potential for the firm to win the bidding contest for the Orange Line mass transit project (western section), which will take place in 1H23, will pose upside to the share price of around Bt1-1.5/share as the auction date approaches.

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>Q2 22 result was healthy derived from both increase in ridership as well as ASP in both expressway and rail. </li>
<li>Cost increase but not as high as revenue increase therefore margin expanded while net profit went up 3x YoY. 2H 2022 will be even better. </li>
<li>Compared to AOT, BEM's PBR is 63% cheaper while its share price still underperformed AOT this year by 11%. </li>
</ul>


Q2 22 result was healthy derived from both increase in ridership as well as ASP in both expressway and rail. 
Cost increase but not as high as revenue increase therefore margin expanded while net profit went up 3x YoY. 2H 2022 will be even better. 
Compared to AOT, BEM's PBR is 63% cheaper while its share price still underperformed AOT this year by 11%. 


Bangkok Express and Metro (BEM): Marching On

<ul>
<li>The company 2Q22 net profit came out above our expectation at Bt634m, the highest level in the past seven quarter, mainly supported by solid recovery in toll and MRT traffic </li>
<li>Strong recovery in earnings in2Q22 and 2H22 2Q22 revenue reported at Bt3.3bn (+36%YoY +5%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 in 2H22 to recover to roughly 310k trips by end of 2022, the level last time we have seen in Nov’21. </li>
</ul>


The company 2Q22 net profit came out above our expectation at Bt634m, the highest level in the past seven quarter, mainly supported by solid recovery in toll and MRT traffic 
Strong recovery in earnings in2Q22 and 2H22 2Q22 revenue reported at Bt3.3bn (+36%YoY +5%QoQ) supported by solid rebound in daily average MRT ridership to 231k trips (+94%YoY +23%QoQ) 
We anticipate average daily MRT ridership in 2H22 to recover to roughly 310k trips by end of 2022, the level last time we have seen in Nov’21. 


Bem : Expect 2H22 Earnings to Continue to Improve While Reaching Pre-COVID

<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

Thailand

Bangkok Expressway and Metro Public Company Limited is a Thai public transportation company that constructs, operates, and manages expressways and rapid rail transit systems. The company also engages in commercial development, including retail space rental, advertising, and telecommunication services within its transportation networks. It was formed in 2015 through the merger of Bangkok Expressway Public Company Limited and Bangkok Metro Public Company Limited, and is headquartered in Bangkok, Thailand.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Bangkok Expressway and Metro (BEM-R TB)

BEM : Expect 3Q22 Earnings to Hit 12 Quarter High

Maintain BUY recommendation for BEM with a new target price of Bt11.40 (Previous TP: Bt9.90) after we incorporate value from orange line project...

Pi Securities PCL, Thailand

Big Cap Tactical Picks

We add BEM to our portfolio, as the stock should benefit from the increases in ridership in the MRT system and traffic volume following the...

Krungthai XSpring

Bangkok Express and Metro (BEM): Marching On

The early sign of recovery is there and BEM has proven that it participates and does not lag behind the improvement in the ridership recovery as...

Henry Soediarko

Bem : Expect 2H22 Earnings to Continue to Improve While Reaching Pre-COVID

The company 2Q22 net profit came out above our expectation at Bt634m, the highest level in the past seven quarter, mainly supported by solid...

Pi Securities PCL, Thailand

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

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)