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

We initiate coverage on HTC with a BUY rating and based on a target price of Bt27, derived from 15.7xPE’18E, which represents its two-year average trading range and a discount of 39% on the World Consumer Staples Sector. The story:<ul><li>Exclusive rights to southern region from global brand owner</li><li>PET factory to support long-term growth</li><li>Distribution system spins product turnover faster</li><li>Upside for refined sugar cost changed</li></ul>Risks:  <ul><li>Shortage of main raw materials</li><li>Changes in consumer preferences to non-returnable containers from glass</li></ul>Background: Haad Thip Public Company Limited was established in 1969 in Thailand’s southern region. HTC was granted a franchise by The Coca-Cola Company (U.S.A), Atlanta, Georgia, as an exclusive bottler of sparkling beverages under the trademarks of Coca-Cola, Fanta and Sprite, and other products owned by Coca-Cola company such as Minute Maid, Aquarius and Namthip, drinking water for Thailand’s 14 southern provinces. The company has two factories, one in Hat Yai, Songkhla province, and Phunphin*, Surat Thani, which have combined capacity of 30m cases per year.

We initiate coverage on HTC with a BUY rating and based on a target price of Bt27, derived from 15.7xPE’18E, which represents its two-year average trading range and a discount of 39% on the World Consumer Staples Sector. The story:Exclusive rights to southern region from global brand ownerPET factory to support long-term growthDistribution system spins product turnover fasterUpside for refined sugar cost changedRisks:  Shortage of main raw materialsChanges in consumer preferences to non-returnable containers from glassBackground: Haad Thip Public Company Limited was established in 1969 in Thailand’s southern region. HTC was granted a franchise by The Coca-Cola Company (U.S.A), Atlanta, Georgia, as an exclusive bottler of sparkling beverages under the trademarks of Coca-Cola, Fanta and Sprite, and other products owned by Coca-Cola company such as Minute Maid, Aquarius and Namthip, drinking water for Thailand’s 14 southern provinces. The company has two factories, one in Hat Yai, Songkhla province, and Phunphin*, Surat Thani, which have combined capacity of 30m cases per year.

HTC: Soft Drink King Rules in Southern Thailand

United States

PepsiCo, Inc. operates worldwide beverage, snack and food businesses. The Company manufactures or uses contract manufacturers, markets and sells a variety of grain-based snacks, carbonated and non-carbonated beverages and foods in countries throughout the world.

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Pepsico Inc (PEP US)

HTC: Soft Drink King Rules in Southern Thailand

We initiate coverage on HTC with a BUY rating and based on a target price of Bt27, derived from 15.7xPE’18E, which represents its two-year average...

Pi Securities PCL, Thailand

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