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

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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>We maintain our HOLD rating with a target price of Bt3.70,based on 26.7xPE’23E, the lowest level of pre-COVID level.We expect CHG to report a 3Q22 net profit at Bt498m (-68%YoY,-43%YoY).</li>
<li>Weak across all verticals in 3Q22 We forecast 3Q22E earnings at Bt498m, continuing to witness a sharp fall of 68%YoY and 43%QoQ.The 9M22 will account for 88% of our 2022E</li>
<li>We expect CHG’s revenue to book atBt2.3bn(-48%YoY,-18%QoQ).The YoY trend is anticipated to nosedive off a high base effect in 3Q21when the company gained from an uptick in new infection patients. </li>
</ul>


We maintain our HOLD rating with a target price of Bt3.70,based on 26.7xPE’23E, the lowest level of pre-COVID level.We expect CHG to report a 3Q22 net profit at Bt498m (-68%YoY,-43%YoY).
Weak across all verticals in 3Q22 We forecast 3Q22E earnings at Bt498m, continuing to witness a sharp fall of 68%YoY and 43%QoQ.The 9M22 will account for 88% of our 2022E
We expect CHG’s revenue to book atBt2.3bn(-48%YoY,-18%QoQ).The YoY trend is anticipated to nosedive off a high base effect in 3Q21when the company gained from an uptick in new infection patients. 


<ul>
<li>We maintain our HOLD rating with a new TP of Bt3.70, down 5% from prior TP after roll over to 26.7xPE’23E (derived from its pre-pandemic levels).Despite, 2H22 earnings are expect</li>
<li>2H22 earnings to drop but still above pre-COVID We expect earnings trend continuing in downward trend in 2H22with revenue to drop HoH on the back of lower demand for COVID-19services</li>
<li>New projects in 2H22 and beyond   The company also plans to open two new hospitals (Shewarate and Chularat) in 2H22-1Q23 with a combined 150 beds or 19%of total bed </li>
</ul>


We maintain our HOLD rating with a new TP of Bt3.70, down 5% from prior TP after roll over to 26.7xPE’23E (derived from its pre-pandemic levels).Despite, 2H22 earnings are expect
2H22 earnings to drop but still above pre-COVID We expect earnings trend continuing in downward trend in 2H22with revenue to drop HoH on the back of lower demand for COVID-19services
New projects in 2H22 and beyond   The company also plans to open two new hospitals (Shewarate and Chularat) in 2H22-1Q23 with a combined 150 beds or 19%of total bed 


<ul>
<li>We keep our HOLD rating with a TP of Bt3.90, based on an unchanged 15xPE’22E. Although, 2022E earnings are expected to continue normalizing in 2H22</li>
<li>2Q22 earnings grew YoY but fell QoQ CHG’s 2Q22 earnings was at Bt878m, rose 52%YoY but declined 35%QoQ, which was 11% and 6% above our and market expectation, respectively.</li>
<li>Earnings trend to normalize in 2H22 We believe 2H22 earnings momentum will drop both YoY and HoH, given pandemic-related contribution fades off in the latter half of the year</li>
</ul>


We keep our HOLD rating with a TP of Bt3.90, based on an unchanged 15xPE’22E. Although, 2022E earnings are expected to continue normalizing in 2H22
2Q22 earnings grew YoY but fell QoQ CHG’s 2Q22 earnings was at Bt878m, rose 52%YoY but declined 35%QoQ, which was 11% and 6% above our and market expectation, respectively.
Earnings trend to normalize in 2H22 We believe 2H22 earnings momentum will drop both YoY and HoH, given pandemic-related contribution fades off in the latter half of the year


CHG : 2Q22 Earnings Grew YoY but Fell QoQ

<ul>
<li>We reaffirm our HOLD rating with a TP of Bt3.90, based on an unchanged 15xPE’22E. Despite, 22E earnings are expected to continue normalizing in 2H22</li>
<li>Weak QoQ anticipated in 2Q22 We forecast 2Q22E core profit to deliver at Bt781m, surge 36%YoY but drop 42%QoQ, based on the assumed gross margin contraction of 41.3%, down 0.5ppts</li>
<li>Earnings cycle poised to decelerate in 2H22 Looking ahead, we believe that 2H22 earnings momentum is poised to drop both YoY and HoH, following pandemic-related contribution fades off high base</li>
</ul>


We reaffirm our HOLD rating with a TP of Bt3.90, based on an unchanged 15xPE’22E. Despite, 22E earnings are expected to continue normalizing in 2H22
Weak QoQ anticipated in 2Q22 We forecast 2Q22E core profit to deliver at Bt781m, surge 36%YoY but drop 42%QoQ, based on the assumed gross margin contraction of 41.3%, down 0.5ppts
Earnings cycle poised to decelerate in 2H22 Looking ahead, we believe that 2H22 earnings momentum is poised to drop both YoY and HoH, following pandemic-related contribution fades off high base


<ul>
<li>Reiterate HOLD rating with a TP of B3.90, derived from 15xPE’22E, which is close to -2SD of 10-years trading mean. Although 22E earnings on a downhill path</li>
<li>We estimate 1Q22E earnings to be the peak quarter at Bt1.3bn (+418%YoY,-28%QoQ) underpin by YoY growth in COVID-revenue, but QoQ fall from weaker EBIT margin.</li>
<li>We believe earnings momentum to slow down in 2Q22, pressured by lower COVID-19 contribution, as a result of lower infection patients and stopped RT-PCR requirement.</li>
</ul>


Reiterate HOLD rating with a TP of B3.90, derived from 15xPE’22E, which is close to -2SD of 10-years trading mean. Although 22E earnings on a downhill path
We estimate 1Q22E earnings to be the peak quarter at Bt1.3bn (+418%YoY,-28%QoQ) underpin by YoY growth in COVID-revenue, but QoQ fall from weaker EBIT margin.
We believe earnings momentum to slow down in 2Q22, pressured by lower COVID-19 contribution, as a result of lower infection patients and stopped RT-PCR requirement.


CHG: 1Q22 Earnings to Hold up Strong Amid Surged COVID

Thailand

Chularat Hospital Public Company Limited operates a private hospital business through numerous hospitals, medical facilities, and clinics primarily located in eastern Bangkok, Samut Prakan, and other eastern provinces of Thailand. They offer a range of medical services, including specialized care like heart centers and stroke centers. The company is headquartered in Samut Prakan, Thailand, and was founded in 1986.

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Chularat Hospital (CHG TB)

CHG : A Long Sail Before Growth Resumes

We maintain our HOLD rating with a target price of Bt3.70, based on 26.7xPE’23E, the lowest level of pre-COVID level. We expect CHG to report a...

Pi Securities PCL, Thailand

CHG : 2H22 Earnings Trend to Slow Down

We maintain our HOLD rating with a new TP of Bt3.70, down 5% from prior TP after roll over to 26.7xPE’23E (derived from its pre-pandemic levels)....

Pi Securities PCL, Thailand

CHG : 2Q22 Earnings Grew YoY but Fell QoQ

We keep our HOLD rating with a TP of Bt3.90, based on an unchanged 15xPE’22E. Although, 2022E earnings are expected to continue normalizing in 2H22...

Pi Securities PCL, Thailand

CHG : 2Q22 Earnings to Fall QoQ

We reaffirm our HOLD rating with a TP of Bt3.90, based on an unchanged 15xPE’22E. Despite, 22E earnings are expected to continue normalizing in...

Pi Securities PCL, Thailand

CHG: 1Q22 Earnings to Hold up Strong Amid Surged COVID

Reiterate HOLD rating with a TP of B3.90, derived from 15xPE’22E, which is close to -2SD of 10-years trading mean. Although 22E earnings on a...

Pi Securities PCL, Thailand

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