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

We maintain BUY rating for COM7 and roll over our target price in 2020 to Bt27.80 derived from 27xPE’20E, Thai consumer discretionary sector.
<ul>
<li>The stock price has rallied 33%QTD and 23% since our initial coverage launched on 3th May 2019. This mostly reflects the announcement on 8th May that BTS Group Holdings PCL (BTS TB) acquired 5% lot of total COM7’s shares and ranked fifth among shareholders.</li>
<li>This implies potential synergy created between these parties in near-term such as more aggressive branch expansion plan, improvement in marketing activities via VGI (72.4% holding by BTS) and other sharing cost programme.</li>
<li>In long-term, we believe the company will still benefit from promising branch expansion plan (estimated 700 units as of 1H19), 5G network initiative in 2020, upcoming launches for flagship smartphone brands in 2H19, and potential synergy with BTS Group.</li>
</ul>

We maintain BUY rating for COM7 and roll over our target price in 2020 to Bt27.80 derived from 27xPE’20E, Thai consumer discretionary sector.

The stock price has rallied 33%QTD and 23% since our initial coverage launched on 3th May 2019. This mostly reflects the announcement on 8th May that BTS Group Holdings PCL (BTS TB) acquired 5% lot of total COM7’s shares and ranked fifth among shareholders.
This implies potential synergy created between these parties in near-term such as more aggressive branch expansion plan, improvement in marketing activities via VGI (72.4% holding by BTS) and other sharing cost programme.
In long-term, we believe the company will still benefit from promising branch expansion plan (estimated 700 units as of 1H19), 5G network initiative in 2020, upcoming launches for flagship smartphone brands in 2H19, and potential synergy with BTS Group.


COM7: Potential Synergy with the Largest Mass Transit Operator in Thailand

We initiate coverage of COM7 with a BUY rating, based on a target price of Bt22.10 and derived from 25.4xPE’19E, which is the Thailand average for stocks in the consumer discretionary sector.
The story:
<ul>
<li>Distribution channel expansion remains its core strategy</li>
<li>Decline in iPhone sales should be offset by increased sales of other high-margin products</li>
<li>Overall IT market still strong, particularly in the smart device segment</li>
<li>Earnings expected to grow at 17% CAGR in 2019-21E</li>
</ul>
Risks: Currency fluctuation and higher-than-expected outdated inventory

We initiate coverage of COM7 with a BUY rating, based on a target price of Bt22.10 and derived from 25.4xPE’19E, which is the Thailand average for stocks in the consumer discretionary sector.
The story:

Distribution channel expansion remains its core strategy
Decline in iPhone sales should be offset by increased sales of other high-margin products
Overall IT market still strong, particularly in the smart device segment
Earnings expected to grow at 17% CAGR in 2019-21E

Risks: Currency fluctuation and higher-than-expected outdated inventory

COM7: Thailand’s Biggest IT Retail Chain Is About to Get Huge

Thailand

Com7 Public Company Limited operates a chain of retail outlets that imports, retails, and distributes computers and IT-related products in Thailand. The Company offers products, such as smartphones, tablets, notebooks, and computer sets. Com7 also offers computer components, such as CPUs, hard drives, and network and accessories.

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Com7 (COM7 TB)

COM7: Potential Synergy with the Largest Mass Transit Operator in Thailand

We maintain BUY rating for COM7 and roll over our target price in 2020 to Bt27.80 derived from 27xPE’20E, Thai consumer discretionary sector. The...

Pi Securities PCL, Thailand

COM7: Thailand’s Biggest IT Retail Chain Is About to Get Huge

We initiate coverage of COM7 with a BUY rating, based on a target price of Bt22.10 and derived from 25.4xPE’19E, which is the Thailand average for...

Pi Securities PCL, Thailand

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