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>Maintain BUY rating for MAJOR but cut target price to Bt21.40 (Previous TP:Bt23.70) after cut 2023E earnings by 20% as we factor in revenue sharing model and higher-than-expected operating cost. </li>
<li>3Q22 core earnings is expected to drop 7%QoQ Expect the company to report 3Q22 net profit at Bt81m. (-38%QoQ -96%YoY) Stripping out extra items from; 1.) divestment of Thai Ticket </li>
<li>Revenue is expected to hit 11-quarter high at Bt1.7bn (+3%QoQ +935%YoY) QoQ increase should be driven by high-margin advertising segment (+23%QoQ to Bt173m), bowling (+35%QoQ to Bt99m)</li>
</ul>


Maintain BUY rating for MAJOR but cut target price to Bt21.40 (Previous TP:Bt23.70) after cut 2023E earnings by 20% as we factor in revenue sharing model and higher-than-expected operating cost. 
3Q22 core earnings is expected to drop 7%QoQ Expect the company to report 3Q22 net profit at Bt81m. (-38%QoQ -96%YoY) Stripping out extra items from; 1.) divestment of Thai Ticket 
Revenue is expected to hit 11-quarter high at Bt1.7bn (+3%QoQ +935%YoY) QoQ increase should be driven by high-margin advertising segment (+23%QoQ to Bt173m), bowling (+35%QoQ to Bt99m)


<ul>
<li>Maintain BUY rating for MAJOR with target price of Bt23.70. The company report 2Q22 net profit at Bt131m. Stripping out extra items on fair value adjustment and fire insurance claim</li>
<li>Impressive recovery in profit in 2Q22 Revenue reached 10-quarter high at Bt1.6bn following an increase in traffic at theatres(estimated at around 5.5 million vs.2.8 million in 1Q22and 0.9million in 2Q21)</li>
<li>Well-Managed cost from operation to be remained, resulted in improvement in gross profit margin to 26.8% compared with 11.1% in 1Q22 and -30.7% in 2Q21.</li>
</ul>


Maintain BUY rating for MAJOR with target price of Bt23.70. The company report 2Q22 net profit at Bt131m. Stripping out extra items on fair value adjustment and fire insurance claim
Impressive recovery in profit in 2Q22 Revenue reached 10-quarter high at Bt1.6bn following an increase in traffic at theatres(estimated at around 5.5 million vs.2.8 million in 1Q22and 0.9million in 2Q21)
Well-Managed cost from operation to be remained, resulted in improvement in gross profit margin to 26.8% compared with 11.1% in 1Q22 and -30.7% in 2Q21.


MAJOR : Entering Low Season in 3Q22 Before Hitting High in 4Q22

Head of Research, Krungthai XSpring

Waraporn Wiboonkanarak

Head of Research

A full service Thai brokerage

Krungthai XSpring

Krungthai XSpring is a full service broker. The company provides a wide range of investment services such as Securities Brokerage, Derivative Agent Business, Securities Borrowing and Lending, Securities Trading, Underwriting, Financial Advisory, Wealth Advisory, Private Fund Management and International Markets Securities Trading. 

In terms of credibility, Fitch Ratings has assigned Krunghtai XSpring a long-term rating of AA- and a national short-term rating of F1+ with stable outlook.

Thematic (Sector/Industry)

<ul><li>We recommend buying MEGA and MAJOR.</li><li>MEGA’s share price has rebounded by more than 5% over the past two weeks on the market’s expectations for a limited impact from Myanmar’s government ordering the suspension of loan repayments in foreign currencies.</li><li>The firm’s 2022E earnings are forecast to grow 8.68% YoY to Bt2,116mn, driven by the depreciation of the baht, the development of new projects and expansion to new markets with low competition.</li></ul>

We recommend buying MEGA and MAJOR.MEGA’s share price has rebounded by more than 5% over the past two weeks on the market’s expectations for a limited impact from Myanmar’s government ordering the suspension of loan repayments in foreign currencies.The firm’s 2022E earnings are forecast to grow 8.68% YoY to Bt2,116mn, driven by the depreciation of the baht, the development of new projects and expansion to new markets with low competition.

<ul>
<li>Maintain BUY rating for MAJOR with target price of Bt23.70. We expect the company to post Bt95m core profit in 2Q22,(vs. losses of Bt83m in 1Q22 and Bt240m in 2Q21)</li>
<li>Impressive recovery in profit in 2Q22 Expect the company to report2Q22net profit at Bt165m,four-quarter high.Stripping out extra gain from fire insurance claim recognized in 2Q22,core profit should be at Bt95m   </li>
<li>Revenue is expected to hit 10-quarter high at Bt1.6bn following an increase in traffic at theatres(estimated at around 5.5 million vs. 2.8 million in 1Q22 and 0.9 million in 2Q21)</li>
</ul>


Maintain BUY rating for MAJOR with target price of Bt23.70. We expect the company to post Bt95m core profit in 2Q22,(vs. losses of Bt83m in 1Q22 and Bt240m in 2Q21)
Impressive recovery in profit in 2Q22 Expect the company to report2Q22net profit at Bt165m,four-quarter high.Stripping out extra gain from fire insurance claim recognized in 2Q22,core profit should be at Bt95m   
Revenue is expected to hit 10-quarter high at Bt1.6bn following an increase in traffic at theatres(estimated at around 5.5 million vs. 2.8 million in 1Q22 and 0.9 million in 2Q21)


<ul>
<li>We expect the company’s operating performance to improve gradually from the bottom in 3Q21as there are number of quality movies to be released after been postponed upon restricted measures induced </li>
<li>Expect the company to report Bt47m net profit in 4Q21, seven-quarter high in terms of core business operation</li>
<li>EBITDA in 4Q21 is expected to turn positive as it driven by pent-up demand after lockdown together with impressive ticket sales from Spider-Man: No Way Home.</li>
</ul>


We expect the company’s operating performance to improve gradually from the bottom in 3Q21as there are number of quality movies to be released after been postponed upon restricted measures induced 
Expect the company to report Bt47m net profit in 4Q21, seven-quarter high in terms of core business operation
EBITDA in 4Q21 is expected to turn positive as it driven by pent-up demand after lockdown together with impressive ticket sales from Spider-Man: No Way Home.


MAJOR: Expect EBITDA to Turn Positive from 4Q21 and Onward to 2022

Thailand

Major Cineplex Group Public Company Limited operates movie theater chain under Major Cineplex name, and bowling alley chain under Major Bowl name. The Company also provides theater advertising services and concession stand rentals in its movie and bowling complexes.

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Major Cineplex Group (MAJOR TB)

MAJOR : Accumulate on Weakening Earnings

Maintain BUY rating for MAJOR but cut target price to Bt21.40 (Previous TP: Bt23.70) after cut 2023E earnings by 20% as we factor in revenue...

Pi Securities PCL, Thailand

MAJOR : Entering Low Season in 3Q22 Before Hitting High in 4Q22

Maintain BUY rating for MAJOR with target price of Bt23.70. The company report 2Q22 net profit at Bt131m. Stripping out extra items on fair value...

Pi Securities PCL, Thailand

Big Cap Tactical Picks - Aug 3, 2022

MEGA’s share price has rebounded by more than 5% over the past two weeks on the market’s expectations for a limited impact from Myanmar’s government

Krungthai XSpring

MAJOR : Still in Recovery Path

Maintain BUY rating for MAJOR with target price of Bt23.70. We expect the company to post Bt95m core profit in 2Q22, (vs. losses of Bt83m in 1Q22...

Pi Securities PCL, Thailand

MAJOR: Expect EBITDA to Turn Positive from 4Q21 and Onward to 2022

We expect the company’s operating performance to improve gradually from the bottom in 3Q21 as there are number of quality movies to be released...

Pi Securities PCL, Thailand

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