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

Central Retail Corporation / Equity Bottom-Up

<ul>
<li>We remain positive on CRC’s food segment growth outlook in 2022 and ahead after the site visit at Tops CLUB store and Tops Food Hall store, backed</li>
<li>Positive toward Site visit at Tops CLUB  We have visited the first Tops CLUB store at behind Bangkok's Central Rama II. Tops CLUB is the first membership-based store of CRC. </li>
<li>Tops CLUB offers big pack size and target on middle to higher-income customers. Currently, Tops CLUB member reached 85,000 members after launched on 28 September 2022.</li>
</ul>


We remain positive on CRC’s food segment growth outlook in 2022 and ahead after the site visit at Tops CLUB store and Tops Food Hall store, backed
Positive toward Site visit at Tops CLUB  We have visited the first Tops CLUB store at behind Bangkok's Central Rama II. Tops CLUB is the first membership-based store of CRC. 
Tops CLUB offers big pack size and target on middle to higher-income customers. Currently, Tops CLUB member reached 85,000 members after launched on 28 September 2022.


<ul>
<li>Maintain HOLD recommendation with a target price of Bt43 due to limited upside to our target price.CRC’s 3Q22 net profit came in at Bt1.2bn (turnaround from a loss of Bt2.2bn,-21%QoQ)</li>
<li>3Q22 profit thanks to strong recover in fashion business   Excluding extraordinary items, core profit was at Bt1.29bn (turnaround from a loss of Bt2.1bn,-30%QoQ). The 9M22 result accounted for 70%</li>
<li>Food business (39% sales contribution), Food revenue was at Bt21bn (+26%YoY, +3%QoQ), following strong SSSG in Thailand (+3%YoY) and Vietnam (+54%YoY), supported by a recovery in customer traffic in stores </li>
</ul>


Maintain HOLD recommendation with a target price of Bt43 due to limited upside to our target price.CRC’s 3Q22 net profit came in at Bt1.2bn (turnaround from a loss of Bt2.2bn,-21%QoQ)
3Q22 profit thanks to strong recover in fashion business   Excluding extraordinary items, core profit was at Bt1.29bn (turnaround from a loss of Bt2.1bn,-30%QoQ). The 9M22 result accounted for 70%
Food business (39% sales contribution), Food revenue was at Bt21bn (+26%YoY, +3%QoQ), following strong SSSG in Thailand (+3%YoY) and Vietnam (+54%YoY), supported by a recovery in customer traffic in stores 


<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

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 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 and undertaken a peer comparison. In this note, we talk about valuations.</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 and undertaken a peer comparison. In this note, we talk about valuations.


I-Tail Corporation Pre-IPO - Initial Thoughts on Valuation

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/berli-jucker-public-co-ltd" target="_blank" data-smartkarma-citation="entities:3685:1" rel="noopener">Berli Jucker (BJC TB)</a> 2Q2022 results saw continue momentum to sales from the recovery in Thailand and Vietnam with some impacy from higher raw material costs on margins.</li>
<li>It packaging supply chain saw a strong recovery from both glass bottling and aluminium cans with the latter seeing the biggest rebound. Retail under BigC also saw strong growth.</li>
<li>
<a href="https://www.smartkarma.com/entities/berli-jucker-public-co-ltd" target="_blank" data-smartkarma-citation="entities:3685:1" rel="noopener">Berli Jucker </a>remains a top proxy for the recovery in domestic consumption in both Thailand and Vietnam through its packaging plus for the retail recovery in Thailand through BigC.</li>
</ul>



Berli Jucker (BJC TB) 2Q2022 results saw continue momentum to sales from the recovery in Thailand and Vietnam with some impacy from higher raw material costs on margins.
It packaging supply chain saw a strong recovery from both glass bottling and aluminium cans with the latter seeing the biggest rebound. Retail under BigC also saw strong growth.

Berli Jucker remains a top proxy for the recovery in domestic consumption in both Thailand and Vietnam through its packaging plus for the retail recovery in Thailand through BigC.


Berli Jucker (BJC TB) - Well-Packaged Recovery Proxy

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 : Rebranding for Growth

We remain positive on CRC’s food segment growth outlook in 2022 and ahead after the site visit at Tops CLUB store and Tops Food Hall store, backed...

Pi Securities PCL, Thailand

CRC : 3Q22 Performance Turned to Profit

Maintain HOLD recommendation with a target price of Bt43 due to limited upside to our target price. CRC’s 3Q22 net profit came in at Bt1.2bn...

Pi Securities PCL, Thailand

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

I-Tail Corporation Pre-IPO - Initial Thoughts on Valuation

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...

Sumeet Singh

Berli Jucker (BJC TB) - Well-Packaged Recovery Proxy

Berli Jucker remains a top proxy for the recovery in domestic consumption in both Thailand and Vietnam through its packaging plus for the retail...

Angus Mackintosh

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