Thai Equity - Bottom-up - Equities, Pi Securities PCL, Thailand

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Thai Equity - Bottom-up - Equities

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Pi Securities PCL, Thailand

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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

Central Retail Corporation / Equity Bottom-Up

<ul>
<li>Downgrade recommendation for CRC to HOLD from BUY with a target price of Bt43. Our downgrade reflects 1)challenging performance outlook for operation in Italy due to a rise of inflation </li>
<li>Expect 3Q22 earnings to recover to profit Revenue in 3Q22 is expected to report at Bt53bn(+38%YoY,+1%QoQ)driven by an expected positive SSSG in all segments comprise of Food segment at +21%YoY</li>
<li>Gross profit margin in 3Q22 should expand YoY and QoQ to 27.5% backed by heathier margin from sales at 25.6% from 23.1% in 3Q21 and 25.5% in 2Q22</li>
</ul>


Downgrade recommendation for CRC to HOLD from BUY with a target price of Bt43. Our downgrade reflects 1)challenging performance outlook for operation in Italy due to a rise of inflation 
Expect 3Q22 earnings to recover to profit Revenue in 3Q22 is expected to report at Bt53bn(+38%YoY,+1%QoQ)driven by an expected positive SSSG in all segments comprise of Food segment at +21%YoY
Gross profit margin in 3Q22 should expand YoY and QoQ to 27.5% backed by heathier margin from sales at 25.6% from 23.1% in 3Q21 and 25.5% in 2Q22


CRC : Solid Earnings Recovery, but It Has Mostly in the Price

<ul>
<li>Maintain BUY recommendation for CRC with a target price of Bt43. CRC’s 2Q22 net profit came in at Bt1.49bn (recovering from a loss YoY, +24%QoQ).</li>
<li>Impressive recovery in profit in 2Q22   CRC’s 2Q22 net profit came in at Bt1.49bn (recovering from a loss of Bt471m YoY, +24%QoQ).1H22 result accounted for 49% of our 2022E.</li>
<li>The YoY recovery in earnings driven by a recovery in customer traffic in three countries (Thailand, Vietnam, and Italy) and an increase in rental &amp; service income as a result</li>
</ul>


Maintain BUY recommendation for CRC with a target price of Bt43. CRC’s 2Q22 net profit came in at Bt1.49bn (recovering from a loss YoY, +24%QoQ).
Impressive recovery in profit in 2Q22   CRC’s 2Q22 net profit came in at Bt1.49bn (recovering from a loss of Bt471m YoY, +24%QoQ).1H22 result accounted for 49% of our 2022E.
The YoY recovery in earnings driven by a recovery in customer traffic in three countries (Thailand, Vietnam, and Italy) and an increase in rental &amp; service income as a result


<ul>
<li>Maintain BUY recommendation for CRC with a target price of Bt43. We expect the company to report 2Q22 net profit at Bt1.4bn (recovering from a loss YoY, +16%QoQ), </li>
<li>Expect 2Q22 earnings to recover to profit We 2Q22 earnings is expected to recover from net loss of Bt471m in 2Q21 to profit at Bt1.4bn(+16%QoQ)as a result of a recovery</li>
<li>We expect CRC to post 2Q22 revenue at Bt52.7bn(+22%YoY, +1%QoQ), driven by 1) an expected positive SSSG in all segments comprise of food segment at +17%YoY, hardline segment at +2%YoY</li>
</ul>


Maintain BUY recommendation for CRC with a target price of Bt43. We expect the company to report 2Q22 net profit at Bt1.4bn (recovering from a loss YoY, +16%QoQ), 
Expect 2Q22 earnings to recover to profit We 2Q22 earnings is expected to recover from net loss of Bt471m in 2Q21 to profit at Bt1.4bn(+16%QoQ)as a result of a recovery
We expect CRC to post 2Q22 revenue at Bt52.7bn(+22%YoY, +1%QoQ), driven by 1) an expected positive SSSG in all segments comprise of food segment at +17%YoY, hardline segment at +2%YoY


CRC : Expect 2Q22 Performance to Turn to Profit

<ul>
<li>Last week analyst meeting came out with neutral tone.We reiterate our BUY rating for CRC with a target price of Bt43.0,based on DCF (WACC of 8.2% and TG of 2%)</li>
<li>Management maintained its key 2022 financial guidance. CRC targeted 2022 sales growth of 15%-20%YoY, mainly from fashion business and targeted GPM retail sales to expend by 100-120bps YoY.</li>
<li>•CRC showed three measures to mitigate the effect from uncertainties under global issue such as(1)cost optimization by controlling OPEX growth to not be higher than 50% of total sales growth</li>
</ul>


Last week analyst meeting came out with neutral tone.We reiterate our BUY rating for CRC with a target price of Bt43.0,based on DCF (WACC of 8.2% and TG of 2%)
Management maintained its key 2022 financial guidance. CRC targeted 2022 sales growth of 15%-20%YoY, mainly from fashion business and targeted GPM retail sales to expend by 100-120bps YoY.
•CRC showed three measures to mitigate the effect from uncertainties under global issue such as(1)cost optimization by controlling OPEX growth to not be higher than 50% of total sales growth


CRC: Growth Momentum Intact Despite Uncertainties

<ul>
<li>We reiterate our BUY rating for CRC with a target price of Bt43.0, based on DCF (WACC of 8.2% and TG of 2%), implying 35xPE’23E, close to Thai commerce sector.</li>
<li>We expect CRC to report 1Q22 net profit at Bt1.2bn (+208%YoY, -48%QoQ).</li>
<li>YoY growth will be supported by a recovery in sales from fashion business both Thailand and Italy, a solid demand recovery from tourism related parties, and government stimulus </li>
</ul>


We reiterate our BUY rating for CRC with a target price of Bt43.0, based on DCF (WACC of 8.2% and TG of 2%), implying 35xPE’23E, close to Thai commerce sector.
We expect CRC to report 1Q22 net profit at Bt1.2bn (+208%YoY, -48%QoQ).
YoY growth will be supported by a recovery in sales from fashion business both Thailand and Italy, a solid demand recovery from tourism related parties, and government stimulus 


CRC: Expect Strong Earnings Growth YoY in 1Q22

Thailand

Central Retail Corporation Public Company Limited is a multi-format retailing business operating across Thailand, Italy, and Vietnam, and is a flagship company of Central Group. It offers a diverse portfolio across food, fashion, hardline, and property segments, encompassing department stores, supermarkets, hypermarkets, specialty stores, and omnichannel services. The company was founded in 1947 and is headquartered in Bangkok, Thailand.

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Central Retail Corporation (CRC TB)

CRC : Solid Earnings Recovery, but It Has Mostly in the Price

Downgrade recommendation for CRC to HOLD from BUY with a target price of Bt43. Our downgrade reflects 1) challenging performance outlook for...

Pi Securities PCL, Thailand

CRC : 2Q22 Performance Turned to Profit

Maintain BUY recommendation for CRC with a target price of Bt43. CRC’s 2Q22 net profit came in at Bt1.49bn(recovering from a loss...

Pi Securities PCL, Thailand

CRC : Expect 2Q22 Performance to Turn to Profit

Maintain BUY recommendation for CRC with a target price of Bt43. We expect the company to report 2Q22 net profit at Bt1.4bn (recovering from a loss...

Pi Securities PCL, Thailand

CRC: Growth Momentum Intact Despite Uncertainties

Last week analyst meeting came out with neutral tone. We reiterate our BUY rating for CRC with a target price of Bt43.0, based on DCF (WACC of 8.2%...

Pi Securities PCL, Thailand

CRC: Expect Strong Earnings Growth YoY in 1Q22

We reiterate our BUY rating for CRC with a target price of Bt43.0, based on DCF (WACC of 8.2% and TG of 2%), implying 35xPE’23E, close to Thai...

Pi Securities PCL, Thailand

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