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 <a href="https://www.smartkarma.com/entities/1388" target="_blank" data-smartkarma-citation="entities:1388:1">Quality Houses (QH TB)</a> with a BUY rating, based on a target price of Bt3.9 and derived from our target of 10.5xPE’1H19E, which represents a 50% discount to the Real Estate sector. 
The story:
<ul>
<li>Attractive dividend payment prospects</li>
<li>Equity income continue to drive recurring income growth</li>
<li>Real estate demand recovery</li>
<li>Core business is advancing robustly and steadily</li>
</ul>
Risks:
<ul>
<li>Tightened credit approval</li>
<li>Construction material costs increase</li>
<li>Labor shortage</li>
</ul>
Background: Established in 1983,  Quality Houses Public Company Limited and its subsidiaries engage in real estate development, in both the sales and rental segments. Its core business is residential development, with projects offering the entire scope of price ranges and various brands, comprising detached houses, town houses and condos. Its commercial developments consist of serviced apartments, hotels, and office buildings. The company also has two associate companies and two property funds: <a href="https://www.smartkarma.com/entities/9906" target="_blank" data-smartkarma-citation="entities:9906:1">Home Product Center (HMPRO TB)</a>, LH Financial Group (LHFG), <a href="https://www.smartkarma.com/entities/22773" target="_blank" data-smartkarma-citation="entities:22773:1">Quality Houses Hotel And Residence Freehold And Leasehold Property Fund (QHHR TB)</a> and <a href="https://www.smartkarma.com/entities/19212" target="_blank" data-smartkarma-citation="entities:19212:1">Quality Houses Leasehold Pro (QHPF TB)</a>.

We initiate coverage on Quality Houses (QH TB) with a BUY rating, based on a target price of Bt3.9 and derived from our target of 10.5xPE’1H19E, which represents a 50% discount to the Real Estate sector. 
The story:

Attractive dividend payment prospects
Equity income continue to drive recurring income growth
Real estate demand recovery
Core business is advancing robustly and steadily

Risks:

Tightened credit approval
Construction material costs increase
Labor shortage

Background: Established in 1983,  Quality Houses Public Company Limited and its subsidiaries engage in real estate development, in both the sales and rental segments. Its core business is residential development, with projects offering the entire scope of price ranges and various brands, comprising detached houses, town houses and condos. Its commercial developments consist of serviced apartments, hotels, and office buildings. The company also has two associate companies and two property funds: Home Product Center (HMPRO TB), LH Financial Group (LHFG), Quality Houses Hotel And Residence Freehold And Leasehold Property Fund (QHHR TB) and Quality Houses Leasehold Pro (QHPF TB).

QH: Dividend Play Outshines Thai Property Peers

Golden Land Property Development / Equity Bottom-Up

GOLD reported FY2Q18 net profit of Bt465m (+53%YoY, -25%QoQ). The FY1H18 result was 51% of our full-year forecast and in line with our forecast.  <ul>
<li>FY2Q18 sales grew 39%YoY but dropped 15%QoQ due mainly to the success from new projects launched during 2017 to early 2018 together with on-going projects.</li>
<li>Gross profit margin was widen to 33.6% from 33% in FY2Q17 due to economies of scales and better secured land cost.</li>
<li>SG&amp;A to sales drop to 18% YoY in FY1H18 due to no impairment of assets and provision…</li>
</ul>

GOLD reported FY2Q18 net profit of Bt465m (+53%YoY, -25%QoQ). The FY1H18 result was 51% of our full-year forecast and in line with our forecast.  
FY2Q18 sales grew 39%YoY but dropped 15%QoQ due mainly to the success from new projects launched during 2017 to early 2018 together with on-going projects.
Gross profit margin was widen to 33.6% from 33% in FY2Q17 due to economies of scales and better secured land cost.
SG&amp;A to sales drop to 18% YoY in FY1H18 due to no impairment of assets and provision…


GOLD:  39% Sales Growth Along with Margin Expansion

Thailand

Quality Houses Public Company Limited is a property development company. The Company specializes in single-house, apartment, and condominium development projects.

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Quality Houses (QH TB)

QH: Dividend Play Outshines Thai Property Peers

We initiate coverage on Quality Houses (QH TB) with a BUY rating, based on a target price of Bt3.9 and derived from our target of 10.5xPE’1H19E,...

Pi Securities PCL, Thailand

GOLD: 39% Sales Growth Along with Margin Expansion

GOLD reported FY2Q18 net profit of Bt465m (+53%YoY, -25%QoQ). The FY1H18 result was 51% of our full-year forecast and in line with our forecast....

Pi Securities PCL, Thailand

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