Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Thai Life Insurance / Equity Capital Markets

<ul>
<li>Thai Life Insurance (TLI) raised around US$975m in its Thailand IPO. Cornerstone investors, including GIC, took up around 54% of the deal.</li>
<li>Thai Life Insurance is one of the largest life insurance companies in Thailand, third by assets. As of Mar 2022, it had 64,000 insurance agents.</li>
<li>In this note, we talk about allocation and the trading dynamics</li>
</ul>


Thai Life Insurance (TLI) raised around US$975m in its Thailand IPO. Cornerstone investors, including GIC, took up around 54% of the deal.
Thai Life Insurance is one of the largest life insurance companies in Thailand, third by assets. As of Mar 2022, it had 64,000 insurance agents.
In this note, we talk about allocation and the trading dynamics


Thai Life Insurance IPO Trading - One for Domestics and Cornerstones

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 HOLD recommendation for OSP with a target price of Bt32. We expect the company to report 2Q22 net profit at Bt576m, the lowest level since listed</li>
<li>Expect strong earnings recover QoQ in 2Q22 We expect OSP to post 2Q22 net profit of Bt576m (-30%YoY, -23%QoQ),mainly pressured by OSP’s energy drinks sales in Thailand that dropped 10%YoY </li>
<li>Cloudy3Q22earnings outlook We expect the company’s earnings to remain flat QoQ,YoY at the lowest level due to low season quarter (rainy season) and higher marketing expense from new products launch.</li>
</ul>


Maintain HOLD recommendation for OSP with a target price of Bt32. We expect the company to report 2Q22 net profit at Bt576m, the lowest level since listed
Expect strong earnings recover QoQ in 2Q22 We expect OSP to post 2Q22 net profit of Bt576m (-30%YoY, -23%QoQ),mainly pressured by OSP’s energy drinks sales in Thailand that dropped 10%YoY 
Cloudy3Q22earnings outlook We expect the company’s earnings to remain flat QoQ,YoY at the lowest level due to low season quarter (rainy season) and higher marketing expense from new products launch.


OSP : Expect the Lowest Earnings Since Listed in 2Q22

<ul>
<li>We maintain BUY rating with target price at Bt36.50, based on 30xPE’22E, the three years average trading range.</li>
<li>We expect OSP to post 4Q21 net profit of Bt801m (-6%YoY, +38%QoQ), a recovery from 3Q21, the lowest level since listed. QoQ improvement will be supported by recovering beverage sales</li>
<li>We foresee 2022E earnings to hit record high at Bt3.6bn(+14%YoY)driven by 1) a solid revenue growth at +4.7%YoY from recovering sales in beverage sales in Thailand and new products launch </li>
</ul>


We maintain BUY rating with target price at Bt36.50, based on 30xPE’22E, the three years average trading range.
We expect OSP to post 4Q21 net profit of Bt801m (-6%YoY, +38%QoQ), a recovery from 3Q21, the lowest level since listed. QoQ improvement will be supported by recovering beverage sales
We foresee 2022E earnings to hit record high at Bt3.6bn(+14%YoY)driven by 1) a solid revenue growth at +4.7%YoY from recovering sales in beverage sales in Thailand and new products launch 


<ul>
<li>Yesterday analyst meeting came out with a neutral tone. 4Q21 earnings should recover from its bottom in 3Q21 but will continue to be pressured by rising energy costs.</li>
<li>We expect 4Q21 earnings to improve QoQ driven by growing beverage sales in Thailand and solid sales from oversea sales except Myanmar, but soften YoY pressured </li>
<li>Gross margin should improve by 1Q22 on cost-saving of cans materials.</li>
</ul>


Yesterday analyst meeting came out with a neutral tone. 4Q21 earnings should recover from its bottom in 3Q21 but will continue to be pressured by rising energy costs.
We expect 4Q21 earnings to improve QoQ driven by growing beverage sales in Thailand and solid sales from oversea sales except Myanmar, but soften YoY pressured 
Gross margin should improve by 1Q22 on cost-saving of cans materials.


OSP: OSP Is Aiming to Launch Cannabis Related Products in 1H22

<p>We maintain BUY rating with target price at Bt43, based on 35xPE’21E, the average of the Thailand energy drinks stocks.</p><div>• We expect 3Q21 earnings to hit bottom of this year due to impact from cities lockdown for the whole quarter and low season quarters (rainy season). However, we expect 4Q21 profit to recover back quickly supported by multi-brand strategy and demand recovery after cities lockdown easing.</div><div></div><div>• Ready for inorganic growth is a new key message from top management. OSP is a net cash company. If the company leverage D/E ratio to 1 times from 0.4 times in 2Q21, we estimated potential earnings upside of Bt1.8bn or roughly 50% of 2020 net profit base on average ROA of 15%.</div><div></div><div>• Faster-than-expected vaccine rollout and a sign for reduction in number of new COVID-19 patient will be the key catalysts.</div><p></p><p>We maintain positive view toward its medium to long-term outlook driven by 1) Growing and gaining market share in Thailand energy drinks; 2) Solid C-vitt sales growth momentum; 3) Solid sales growth in CLMV markets; and 4) upside risk from inorganic growth.</p>

We maintain BUY rating with target price at Bt43, based on 35xPE’21E, the average of the Thailand energy drinks stocks.• We expect 3Q21 earnings to hit bottom of this year due to impact from cities lockdown for the whole quarter and low season quarters (rainy season). However, we expect 4Q21 profit to recover back quickly supported by multi-brand strategy and demand recovery after cities lockdown easing.• Ready for inorganic growth is a new key message from top management. OSP is a net cash company. If the company leverage D/E ratio to 1 times from 0.4 times in 2Q21, we estimated potential earnings upside of Bt1.8bn or roughly 50% of 2020 net profit base on average ROA of 15%.• Faster-than-expected vaccine rollout and a sign for reduction in number of new COVID-19 patient will be the key catalysts.We maintain positive view toward its medium to long-term outlook driven by 1) Growing and gaining market share in Thailand energy drinks; 2) Solid C-vitt sales growth momentum; 3) Solid sales growth in CLMV markets; and 4) upside risk from inorganic growth.

OSP: Solid Performance Among COVID-19 Pandemic

Thailand

Osotspa is a leading Thai manufacturer and distributor of consumer products, primarily focusing on beverages, personal care, healthcare, and confectionery products. Its beverage portfolio includes energy drinks like M-150 and Shark Energy, sports drinks, and functional drinks. The company also offers baby care, women's beauty care, and male grooming products. Osotspa is headquartered in Bangkok, Thailand, and was founded in 1891.

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Osotspa (OSP TB)

Thai Life Insurance IPO Trading - One for Domestics and Cornerstones

Thai Life Insurance (TLI) raised around US$975m in its Thailand IPO. Cornerstone investors, including GIC, took up around 54% of the deal. In this...

Sumeet Singh

OSP : Expect the Lowest Earnings Since Listed in 2Q22

Maintain HOLD recommendation for OSP with a target price of Bt32. We expect the company to report 2Q22 net profit at Bt576m, the lowest level since...

Pi Securities PCL, Thailand

OSP: Expect 4Q21 Earnings to Recover QoQ

We maintain BUY rating with target price at Bt36.50, based on 30xPE’22E, the three years average trading range. •We expect OSP to post 4Q21 net...

Pi Securities PCL, Thailand

OSP: Solid Performance Among COVID-19 Pandemic

We maintain positive view toward its medium to long-term outlook driven by 1) Growing and gaining market share in Thailand energy drinks; 2) Solid...

Pi Securities PCL, Thailand

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Thai Life Insurance IPO Trading - One for Domestics and Cornerstones

Thai Life Insurance (TLI) raised around US$975m in its Thailand IPO. Cornerstone investors, including GIC, took up around 54% of the deal. In this...

Sumeet Singh

OSP : Expect the Lowest Earnings Since Listed in 2Q22

Maintain HOLD recommendation for OSP with a target price of Bt32. We expect the company to report 2Q22 net profit at Bt576m, the lowest level since...

Pi Securities PCL, Thailand

OSP: Expect 4Q21 Earnings to Recover QoQ

We maintain BUY rating with target price at Bt36.50, based on 30xPE’22E, the three years average trading range. •We expect OSP to post 4Q21 net...

Pi Securities PCL, Thailand

OSP: OSP Is Aiming to Launch Cannabis Related Products in 1H22

Yesterday analyst meeting came out with a neutral tone. 4Q21 earnings should recover from its bottom in 3Q21 but will continue to be pressured by...

Pi Securities PCL, Thailand

OSP: Solid Performance Among COVID-19 Pandemic

We maintain positive view toward its medium to long-term outlook driven by 1) Growing and gaining market share in Thailand energy drinks; 2) Solid...

Pi Securities PCL, Thailand