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 BUY rating and maintaion TP at Bt45.00 based on 35.6xPE’1H23E (+0.5S.D. of 5-year trading history).3Q22 core earnings was 7% above our forecast due to strong iPhone 14 </li>
<li>3Q22 earnings resisted inflationary impact 3Q22 core earnings was at Bt721m (+29% YoY, +16% QoQ).Strong YoY growth was underlined by revenue growth while QoQ growth was led by gross margin </li>
<li>Sales in 3Q22 was at Bt15bn (+48% YoY, +3% QoQ). YoY revenue surged due to robust demand for iPhone 14 and other synergizing products like the Macbook and Apple</li>
</ul>


We maintain our BUY rating and maintaion TP at Bt45.00 based on 35.6xPE’1H23E (+0.5S.D. of 5-year trading history).3Q22 core earnings was 7% above our forecast due to strong iPhone 14 
3Q22 earnings resisted inflationary impact 3Q22 core earnings was at Bt721m (+29% YoY, +16% QoQ).Strong YoY growth was underlined by revenue growth while QoQ growth was led by gross margin 
Sales in 3Q22 was at Bt15bn (+48% YoY, +3% QoQ). YoY revenue surged due to robust demand for iPhone 14 and other synergizing products like the Macbook and Apple


<ul>
<li>We maintain BUY with TP of Bt45.00 based on 35.6xPE’1H23E (0.5S.D. of 5-year trading history). Analyst meeting came out with positive tone on the long-term growth trends from 5G</li>
<li>Large 3Q22E earnings is one-time and non-cash We expect 3Q22E earnings to be at Bt1.7bn (+200% YoY, +176% QoQ). The significant YoY and QoQ increase is due to a one-time </li>
<li>Stripping the large gain, 3Q22E recurring earnings is expected to be at Bt678m (+21% YoY, +9% QoQ). Both YoY and QoQ increase is mainly driven by sales growth led </li>
</ul>


We maintain BUY with TP of Bt45.00 based on 35.6xPE’1H23E (0.5S.D. of 5-year trading history). Analyst meeting came out with positive tone on the long-term growth trends from 5G
Large 3Q22E earnings is one-time and non-cash We expect 3Q22E earnings to be at Bt1.7bn (+200% YoY, +176% QoQ). The significant YoY and QoQ increase is due to a one-time 
Stripping the large gain, 3Q22E recurring earnings is expected to be at Bt678m (+21% YoY, +9% QoQ). Both YoY and QoQ increase is mainly driven by sales growth led 


COM7 : Continued Strong Demand Post-Covid

<ul>
<li>We upgrade our rating to BUY while rolling-over and raising our TP to Bt45.00 (up 16% from previous TP) based on 35.6xPE’1H23E (0.5S.D. of 5-year trading history).</li>
<li>2Q22 earnings dropped further than expected QoQ 2Q22 earnings was at Bt620m (+6% YoY, -21%QoQ). YoY growth was from robust revenue growth. QoQ decline was caused by higher SG&amp;A </li>
<li>Sales in 2Q22 was at Bt14bn (+25% YoY, flat QoQ). Robust YoY growth was led by continued demand of Apple and Realme products,supported by the addition of 109 stores YoY. </li>
</ul>


We upgrade our rating to BUY while rolling-over and raising our TP to Bt45.00 (up 16% from previous TP) based on 35.6xPE’1H23E (0.5S.D. of 5-year trading history).
2Q22 earnings dropped further than expected QoQ 2Q22 earnings was at Bt620m (+6% YoY, -21%QoQ). YoY growth was from robust revenue growth. QoQ decline was caused by higher SG&amp;A 
Sales in 2Q22 was at Bt14bn (+25% YoY, flat QoQ). Robust YoY growth was led by continued demand of Apple and Realme products,supported by the addition of 109 stores YoY. 


COM7 : Low 2Q22 but Bright Long-Term Outlook

<ul>
<li>We downgrade to HOLD rating with a new TP of Bt38.75 derived from 28.9xPE’22E (-0.5SD of 5-Yr trading average)to factor in negative impact from stock dividend on 22E EPS growth</li>
<li>COM7 announced annual cash dividend of Bt1.00 and stock dividend (Bt0.25), XD date on 11 Mar.</li>
<li>We believe the dilution effect will have a negative impact on the company’s shareholders.Recurring EPS growth should drop to-38.4%YoYin 22E,down from 23.2%YoYpre-dilution,while dividend yield will also be halved to 1.2%.</li>
</ul>


We downgrade to HOLD rating with a new TP of Bt38.75 derived from 28.9xPE’22E (-0.5SD of 5-Yr trading average)to factor in negative impact from stock dividend on 22E EPS growth
COM7 announced annual cash dividend of Bt1.00 and stock dividend (Bt0.25), XD date on 11 Mar.
We believe the dilution effect will have a negative impact on the company’s shareholders.Recurring EPS growth should drop to-38.4%YoYin 22E,down from 23.2%YoYpre-dilution,while dividend yield will also be halved to 1.2%.


COM7: Dilution Effect Have Significant Impact to 22E EPS Growth

<ul>
<li>We upgrade COM7 to BUY and raise TP by 34% to Bt92.50 derived from 34.5xPE’22E (+0.25SD of 5-Yr trading average).Our rating reflects a positive outlook toward its strong potential growth </li>
<li>We downgrade our target PE to 34.5xPE’22 (+0.25SD) from 39.0xPE’22 (+1SD) previously to reflect declining earnings momentum. We believe recurring earnings growth at CAGR of 45% over past two years </li>
<li>We expect strong earnings growth in 2022 at +23% driven by strong iPhone 14 sales due to growing 5G device penetration.</li>
</ul>


We upgrade COM7 to BUY and raise TP by 34% to Bt92.50 derived from 34.5xPE’22E (+0.25SD of 5-Yr trading average).Our rating reflects a positive outlook toward its strong potential growth 
We downgrade our target PE to 34.5xPE’22 (+0.25SD) from 39.0xPE’22 (+1SD) previously to reflect declining earnings momentum. We believe recurring earnings growth at CAGR of 45% over past two years 
We expect strong earnings growth in 2022 at +23% driven by strong iPhone 14 sales due to growing 5G device penetration.


COM7: 5G to Drive Strong Earnings Growth in 2022 and Beyond

Thailand

Com7 Public Company Limited is a leading Thai retailer of information technology (IT) products, including desktop computers, laptops, mobile phones, tablets, and various lifestyle devices. The company also offers repair services for IT gadgets and financial services. It was founded in 2004 and is headquartered in Bangkok, Thailand.

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Com7 (COM7 TB)

COM7 : 3Q22 Earnings Beat Our Forecast

We maintain our BUY rating and maintaion TP at Bt45.00 based on 35.6xPE’1H23E (+0.5S.D. of 5-year trading history). 3Q22 core earnings was 7% above...

Pi Securities PCL, Thailand

COM7 : Continued Strong Demand Post-Covid

We maintain BUY with TP of Bt45.00 based on 35.6xPE’1H23E (0.5S.D. of 5-year trading history). Analyst meeting came out with positive tone on the...

Pi Securities PCL, Thailand

COM7 : Low 2Q22 but Bright Long-Term Outlook

We upgrade our rating to BUY while rolling-over and raising our TP to Bt45.00 (up 16% from previous TP) based on 35.6xPE’1H23E (0.5S.D. of 5-year...

Pi Securities PCL, Thailand

COM7: Dilution Effect Have Significant Impact to 22E EPS Growth

We downgrade to HOLD rating with a new TP of Bt38.75 derived from 28.9xPE’22E (-0.5SD of 5-Yr trading average) to factor in negative impact from...

Pi Securities PCL, Thailand

COM7: 5G to Drive Strong Earnings Growth in 2022 and Beyond

We upgrade COM7 to BUY and raise TP by 34% to Bt92.50 derived from 34.5xPE’22E (+0.25SD of 5-Yr trading average). Our rating reflects a positive...

Pi Securities PCL, Thailand

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