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

CPN Retail Growth Leasehold REIT / Equity Bottom-Up

CPN Retail Growth Leasehold REIT (CPNREIT TB)

<ul>
<li>We maintain BUY rating with target price of Bt23.30, derived from a DCF methodology (WACC=5.65%, g=2%),implying 1.8xP/B'23E (1-year trading average).Our rating reflects strong earnings growth at a CAGR of 30%</li>
<li>3Q22 core profit remains strong CPNREIT reported net profit of Bt672m in 3Q22 after reporting a loss of Bt846m in 3Q21.</li>
<li>Excluding unrealized gains of Bt285m from asset revaluation, 3Q22 recurring profit recovered YoY and expand 8% QoQ to Bt387m driven</li>
</ul>


We maintain BUY rating with target price of Bt23.30, derived from a DCF methodology (WACC=5.65%, g=2%),implying 1.8xP/B'23E (1-year trading average).Our rating reflects strong earnings growth at a CAGR of 30%
3Q22 core profit remains strong CPNREIT reported net profit of Bt672m in 3Q22 after reporting a loss of Bt846m in 3Q21.
Excluding unrealized gains of Bt285m from asset revaluation, 3Q22 recurring profit recovered YoY and expand 8% QoQ to Bt387m driven


CPNREIT : 3Q22 Core Profit Remains Strong

<ul>
<li>We initiate coverage of CPNREIT with a BUY rating and target price of Bt23.30, derived from a DCF methodology (WACC=5.65%, g=2%), implying 1.8xP/B'23E (1-year trading average).</li>
<li>Positive earnings outlook in 2H22 and beyond Fixed rental payments from tenants (63% of total rental contracts) will improve by 1Q23 due to the cancellation of rental discounts</li>
<li>Variable rental payments, constituting 37% of total rental contracts, will increase from 2H22 onwards due to the continuing recovery of mall traffic owing to an international and domestic tourism recovery</li>
</ul>


We initiate coverage of CPNREIT with a BUY rating and target price of Bt23.30, derived from a DCF methodology (WACC=5.65%, g=2%), implying 1.8xP/B'23E (1-year trading average).
Positive earnings outlook in 2H22 and beyond Fixed rental payments from tenants (63% of total rental contracts) will improve by 1Q23 due to the cancellation of rental discounts
Variable rental payments, constituting 37% of total rental contracts, will increase from 2H22 onwards due to the continuing recovery of mall traffic owing to an international and domestic tourism recovery


CPNREIT : A Reliable REIT with Stable Growth

Thailand

CPN Retail Growth Leasehold REIT is a closed-end real estate investment trust that invests in leasehold rights of commercial properties, including shopping malls, office buildings, and hotels, primarily in Thailand. The Trust acquires and manages these properties to generate income through leasing and sub-leasing activities. It was established on December 1, 2017, from the conversion of CPN Retail Growth Leasehold Property Fund, and is headquartered in Bangkok, Thailand.

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CPN Retail Growth Leasehold REIT (CPNREIT TB)

CPNREIT : 3Q22 Core Profit Remains Strong

We maintain BUY rating with target price of Bt23.30, derived from a DCF methodology (WACC=5.65%, g=2%), implying 1.8xP/B'23E (1-year trading...

Pi Securities PCL, Thailand

CPNREIT : A Reliable REIT with Stable Growth

We initiate coverage of CPNREIT with a BUY rating and target price of Bt23.30, derived from a DCF methodology (WACC=5.65%, g=2%), implying 1.8xP...

Pi Securities PCL, Thailand

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