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

Pi Research

Thai Equity - Bottom-up - Equities

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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>DOHOME share price dropped 24%YTD as we believe it has already priced in near-term negative factors such as impact from inflation and expect steel products margin to soften YoY. </li>
<li>Expect 2Q22 earnings sink both YoY and QoQ.We expect 2Q22 net profit to be at Bt324m(-46%YoY,-34%QoQ)as a result of rising products costs and higher SG&amp;A expense from new stores expansion.</li>
<li>We expect DOHOME to post 2Q22 revenue at Bt7.8bn(+23%YoY, -6%QoQ).The YoY growth in revenue driven by SSSG of +11% and new stores expansion.Meanwhile, QoQ decrease in revenue due to seasonal </li>
</ul>


DOHOME share price dropped 24%YTD as we believe it has already priced in near-term negative factors such as impact from inflation and expect steel products margin to soften YoY. 
Expect 2Q22 earnings sink both YoY and QoQ.We expect 2Q22 net profit to be at Bt324m(-46%YoY,-34%QoQ)as a result of rising products costs and higher SG&amp;A expense from new stores expansion.
We expect DOHOME to post 2Q22 revenue at Bt7.8bn(+23%YoY, -6%QoQ).The YoY growth in revenue driven by SSSG of +11% and new stores expansion.Meanwhile, QoQ decrease in revenue due to seasonal 


DOHOME : Expect 2Q22 Earnings to Be Six-Quarters Low

<ul>
<li>We reiterate our HOLD rating for DOHOME with a target price of Bt21.4 (included stock dividend) derived from 35xPE’22E, which is close to the biggest home-improvement player in Thailand.</li>
<li>We expect DOHOME to report 1Q22 net profit at Bt468m (-14%YoY, +41%QoQ), QoQ growth will be supported by (1) high season quarter with a solid SSSG outpace peer at +26%YoY</li>
<li>We expect 2Q22 earnings continue to soften YoY pressured by (1) a drop in margin for steel products,which will trim down overall gross profit margin to roughly 18%-19% from 22.7%</li>
</ul>


We reiterate our HOLD rating for DOHOME with a target price of Bt21.4 (included stock dividend) derived from 35xPE’22E, which is close to the biggest home-improvement player in Thailand.
We expect DOHOME to report 1Q22 net profit at Bt468m (-14%YoY, +41%QoQ), QoQ growth will be supported by (1) high season quarter with a solid SSSG outpace peer at +26%YoY
We expect 2Q22 earnings continue to soften YoY pressured by (1) a drop in margin for steel products,which will trim down overall gross profit margin to roughly 18%-19% from 22.7%


DOHOME: Expect Earnings Increase QoQ from Seasonal Factor

<ul>
<li>A slowdown short-term performance but solid long-term growth outlook. We reiterate our BUY rating with a target price of Bt28.0 derived from 35xPE’22E,which is close to the biggest home-improvement player</li>
<li>We expect DOHOME to report 4Q21 net profit at Bt420m (+95%YoY, +23%QoQ), YoY growth will be supported by (1) a solid SSSG at +39%YoY, and (2) gross profit margin expansion </li>
<li>We expect 1H22 earnings to slightly soften YoY pressured by (1) a drop in margin for steel products,which will trim down overall gross profit margin to roughly 19% from 21.7%-22.7% </li>
</ul>


A slowdown short-term performance but solid long-term growth outlook. We reiterate our BUY rating with a target price of Bt28.0 derived from 35xPE’22E,which is close to the biggest home-improvement player
We expect DOHOME to report 4Q21 net profit at Bt420m (+95%YoY, +23%QoQ), YoY growth will be supported by (1) a solid SSSG at +39%YoY, and (2) gross profit margin expansion 
We expect 1H22 earnings to slightly soften YoY pressured by (1) a drop in margin for steel products,which will trim down overall gross profit margin to roughly 19% from 21.7%-22.7% 


DOHOME: Expect 4Q21 Earnings Grow Both YoY and QoQ

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Index Rebalance

Asset World Corporation / Index Rebalance

<ul>
<li>Asset World, Banpu Public and Ngern Tid Lor are being added to the <a href="https://www.smartkarma.com/entities/stock-exchange-of-thailand-set-50-index" target="_blank" data-smartkarma-citation="entities:31493:1" rel="noopener">SET 50 Index (SET50 INDEX)</a> while Berli Jucker, Delta Electronics and Sri Trang Agro will be deleted.</li>
<li>Estimated one-way turnover is 5.83% and results in a one-way trade of THB 4,957m. The deletions of BJC/ DELTA will result in a funding inflow to the other index constituents.</li>
<li>
<a href="https://www.smartkarma.com/entities/asset-world-corp-pcl" target="_blank" data-smartkarma-citation="entities:28136:1" rel="noopener">Asset World Corporation (AWC TB)</a> is a surprise to an extent with the name not appearing on most lists on the street. We had it as a low probability inclusion.</li>
</ul>


Asset World, Banpu Public and Ngern Tid Lor are being added to the SET 50 Index (SET50 INDEX) while Berli Jucker, Delta Electronics and Sri Trang Agro will be deleted.
Estimated one-way turnover is 5.83% and results in a one-way trade of THB 4,957m. The deletions of BJC/ DELTA will result in a funding inflow to the other index constituents.

Asset World Corporation (AWC TB) is a surprise to an extent with the name not appearing on most lists on the street. We had it as a low probability inclusion.


SET50 December Index Rebalance: AWC, BANPU, TIDLOR Added; BJC, DELTA, STA Out

<ul>
<li>Yesterday analyst meeting came out with a positive tone. DOHOME’s SSSG was at roughly +40%YoY in QTD. Steel products margin stable at roughly 17%-18% in 4Q21 close to 3Q21. </li>
<li>We expect DOHOME earnings to increase QoQ and YoY in 4Q21 supported by solid SSSG from solid construction materials demand, 2) demand from home renovation after a flood</li>
<li>We still like DOHOME for its 1) its store locations that aim to tap high spending customers, 2) store network expansion plan with +22%CAGR in the next three years</li>
</ul>


Yesterday analyst meeting came out with a positive tone. DOHOME’s SSSG was at roughly +40%YoY in QTD. Steel products margin stable at roughly 17%-18% in 4Q21 close to 3Q21. 
We expect DOHOME earnings to increase QoQ and YoY in 4Q21 supported by solid SSSG from solid construction materials demand, 2) demand from home renovation after a flood
We still like DOHOME for its 1) its store locations that aim to tap high spending customers, 2) store network expansion plan with +22%CAGR in the next three years


Thailand

Dohome Public Company Limited operates as a furnishing store. The Company retails hardware, tools, agricultural machinery, furniture, hvac equipment, and other related products. Dohome serves customers in Thailand.

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Dohome PCL (DOHOME TB)

DOHOME : Expect 2Q22 Earnings to Be Six-Quarters Low

DOHOME share price dropped 24%YTD as we believe it has already priced in near-term negative factors such as impact from inflation and expect steel...

Pi Securities PCL, Thailand

DOHOME: Expect Earnings Increase QoQ from Seasonal Factor

We reiterate our HOLD rating for DOHOME with a target price of Bt21.4 (included stock dividend) derived from 35xPE’22E, which is close to the...

Pi Securities PCL, Thailand

DOHOME: Expect 4Q21 Earnings Grow Both YoY and QoQ

A slowdown short-term performance but solid long-term growth outlook. We reiterate our BUY rating with a target price of Bt28.0 derived from...

Pi Securities PCL, Thailand

SET50 December Index Rebalance: AWC, BANPU, TIDLOR Added; BJC, DELTA, STA Out

There are 3 changes to the SET50 index at the December rebalance. AWC, BANPU and TIDLOR will replace BJC, DELTA and STA. AWC is a 'surprise' and...

Brian Freitas

DOHOME: Solid SSSG Should Be Key Driver

Yesterday analyst meeting came out with a positive tone. DOHOME’s SSSG was at roughly +40%YoY in QTD. Steel products margin stable at roughly 17%...

Pi Securities PCL, Thailand

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