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

<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


IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/ramsay-health-care-ltd" target="_blank" data-smartkarma-citation="entities:673:1" rel="noopener">Ramsay Health Care (RHC AU)</a>'s gross spread to <a href="https://www.smartkarma.com/entities/kkr-co-inc" target="_blank" data-smartkarma-citation="entities:27333:1" rel="noopener">KKR &amp; Co Inc (KKR US)</a>’s offer (less the interim dividend) of A$87.52 has widened touching an all-time high of 17.0% today.</li>
<li>Despite the longer-than-expected due diligence, rising rates and market volatility, the evidence suggests that KKR remains committed. The expectation is for a binding proposal by June end.</li>
<li>At the last close, the risk/reward profile is favourable as the downside due to a deal break (-10% estimated decline) is lower than the upside (+17%) from a binding offer. </li>
</ul>



Ramsay Health Care (RHC AU)'s gross spread to KKR &amp; Co Inc (KKR US)’s offer (less the interim dividend) of A$87.52 has widened touching an all-time high of 17.0% today.
Despite the longer-than-expected due diligence, rising rates and market volatility, the evidence suggests that KKR remains committed. The expectation is for a binding proposal by June end.
At the last close, the risk/reward profile is favourable as the downside due to a deal break (-10% estimated decline) is lower than the upside (+17%) from a binding offer. 


CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Quantamental Investing to beat Benchmarks

A. Stotz Investment Research

We pick stocks. We construct portfolios. All our effort is focused on how to better pick stocks and construct portfolios. We serve fund management companies, family offices, and high net worth individuals.

Thematic (Sector/Industry)

<ul>
<li>We highlight 14 stocks in Thailand that look interesting to us based upon our FVMR Methodology</li>
<li>Portfolio changes: Four stocks remain, 10 new join the fray</li>
<li>Since inception, it has gained 118% versus the SET 100 Index’s return of 38%</li>
</ul>


We highlight 14 stocks in Thailand that look interesting to us based upon our FVMR Methodology
Portfolio changes: Four stocks remain, 10 new join the fray
Since inception, it has gained 118% versus the SET 100 Index’s return of 38%


The Stocks to Own in Thailand – Vol. 37

Thailand

Chularat Hospital PCL owns medical centers and hospitals. The Company operates a variety of centers specializing in treatments such as hand surgery, open heart surgery, and strokes as well as providing emergency services and patient care. Chularat Hospital serves the medial industry throughout Thailand.

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Chularat Hospital (CHG TB)

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

Ramsay Health's Offer Spread Risk/Reward

At the last close, the risk/reward profile is favourable as the downside due to a deal break (-10% estimated decline) is lower than the upside...

Arun George

The Stocks to Own in Thailand – Vol. 37

We highlight 14 stocks in Thailand that look interesting to us based on our FVMR Methodology. Portfolio changes: Four stocks remain, and 10 new...

A. Stotz Investment Research

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