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

SiS Distribution (Thailand) PCL / Equity Bottom-Up

<ul>
<li>We maintain our BUY rating and roll-over our TP to Bt31.75(-3% from previous TP) based on 12.9xPE’23E (+0.5S.D. of 5-year trading history). 3Q22 earnings was disappointing and below our expectation</li>
<li>3Q22 earnings was impacted by inflation 3Q22 net profit was at Bt186m (-14% YoY, -4% QoQ). Stripping FX gains, core profit stood at Bt 144m (-19%YoY, -17%QoQ) a nine-quarter low.</li>
<li>Revenue in 3Q22 registered at Bt6.7bn (-21% YoY, -11% QoQ). YoY and QoQ decline was caused by lower Phone and Consumer sales. We believe that SIS’s retail-serving clients</li>
</ul>


We maintain our BUY rating and roll-over our TP to Bt31.75(-3% from previous TP) based on 12.9xPE’23E (+0.5S.D. of 5-year trading history). 3Q22 earnings was disappointing and below our expectation
3Q22 earnings was impacted by inflation 3Q22 net profit was at Bt186m (-14% YoY, -4% QoQ). Stripping FX gains, core profit stood at Bt 144m (-19%YoY, -17%QoQ) a nine-quarter low.
Revenue in 3Q22 registered at Bt6.7bn (-21% YoY, -11% QoQ). YoY and QoQ decline was caused by lower Phone and Consumer sales. We believe that SIS’s retail-serving clients


CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Quantamental Investing to beat Benchmarks

A. Stotz Investment Research

We pick stocks. We construct portfolios. All our effort is focused on how to better pick stocks and construct portfolios. We serve fund management companies, family offices, and high net worth individuals.

Thematic (Sector/Industry)

<ul>
<li>We highlight 14 stocks in Thailand that look interesting to us based on our FVMR Methodology</li>
<li>Portfolio changes: Four stocks remain, 10 new join the fray</li>
<li>Since inception, it has gained 108% versus the SET 100 Index’s return of 40%</li>
</ul>


We highlight 14 stocks in Thailand that look interesting to us based on our FVMR Methodology
Portfolio changes: Four stocks remain, 10 new join the fray
Since inception, it has gained 108% versus the SET 100 Index’s return of 40%


The Stocks to Own in Thailand – Vol. 38

<ul>
<li>We maintain our BUY rating but cut TP by 44% to Bt32.75  based on 11.8xPE’1H23E (down from 19.7xPE’22E previously) to reflect our more conservative valuation on its outlook.Despite weak 1H22</li>
<li>1H22 earnings was flat YoY 2Q22 net profit was at Bt194mn (flat YoY, flat QoQ). Both YoY and QoQ remained flat as revenue decline was offset by gross margin expansion.</li>
<li>Revenue in 2Q22 stood at Bt7.5bn (-5%YoY,-7%QoQ). Phone segment was the largest contributor to the YoY and QoQ drop. Meanwhile, gross margin was at 6.5% (+0.8ppts YoY, +0.6ppts QoQ). </li>
</ul>


We maintain our BUY rating but cut TP by 44% to Bt32.75  based on 11.8xPE’1H23E (down from 19.7xPE’22E previously) to reflect our more conservative valuation on its outlook.Despite weak 1H22
1H22 earnings was flat YoY 2Q22 net profit was at Bt194mn (flat YoY, flat QoQ). Both YoY and QoQ remained flat as revenue decline was offset by gross margin expansion.
Revenue in 2Q22 stood at Bt7.5bn (-5%YoY,-7%QoQ). Phone segment was the largest contributor to the YoY and QoQ drop. Meanwhile, gross margin was at 6.5% (+0.8ppts YoY, +0.6ppts QoQ). 


<ul>
<li>We highlight 14 stocks in Thailand that look interesting to us based upon our FVMR Methodology</li>
<li>Portfolio changes: Four stocks remain, 10 new join the fray</li>
<li>Since inception, it has gained 118% versus the SET 100 Index’s return of 38%</li>
</ul>


We highlight 14 stocks in Thailand that look interesting to us based upon our FVMR Methodology
Portfolio changes: Four stocks remain, 10 new join the fray
Since inception, it has gained 118% versus the SET 100 Index’s return of 38%


The Stocks to Own in Thailand – Vol. 37

<ul>
<li>Analyst meeting came out with positive tone. Cloud and cybersecurity businesses should grow rapidly over the next few years.Current inventory stock provides 4 to 6 months buffer from Chinese lockdown </li>
<li>We believe that cloud and cybersecurity will drive earnings at a CAGR of 18.5% between 2021-24E, led sales growth at 8.6% CAGR and slightly improved margins. Management maintains strong outlook </li>
<li>We expect 1Q22E earnings at Bt201m(+6%QoQ, +6%YoY)driven QoQ by GPM expansion. We recommend accumulating shares now as earnings in 1H22 should be the lowest of the year due to seasonality.</li>
</ul>


Analyst meeting came out with positive tone. Cloud and cybersecurity businesses should grow rapidly over the next few years.Current inventory stock provides 4 to 6 months buffer from Chinese lockdown 
We believe that cloud and cybersecurity will drive earnings at a CAGR of 18.5% between 2021-24E, led sales growth at 8.6% CAGR and slightly improved margins. Management maintains strong outlook 
We expect 1Q22E earnings at Bt201m(+6%QoQ, +6%YoY)driven QoQ by GPM expansion. We recommend accumulating shares now as earnings in 1H22 should be the lowest of the year due to seasonality.


SIS: Cloud and Cybersecurity Will Be the New Main Focus for Growth

Thailand

SiS Distribution (Thailand) Public Company Ltd. distributes computers and peripherals.  The Company distributes the products to resellers, retailers, system integrators, software houses, value added resellers, and original equipment manufacturers.

SiS Distribution (Thailand) PCL (SIS TB)

SIS : 2023 Outlook Remains Bright

We maintain our BUY rating and roll-over our TP to Bt31.75 (-3% from previous TP) based on 12.9xPE’23E (+0.5S.D. of 5-year trading history). 3Q22...

Pi Securities PCL, Thailand

The Stocks to Own in Thailand – Vol. 38

We highlight 14 stocks in Thailand that look interesting to us based on our FVMR Methodology. Since its inception, it has gained 108% versus the...

A. Stotz Investment Research

SIS : 2H22 Earnings Should Improve HoH

We maintain our BUY rating but cut TP by 44% to Bt32.75 based on 11.8xPE’1H23E (down from 19.7xPE’22E previously) to reflect our more conservative...

Pi Securities PCL, Thailand

The Stocks to Own in Thailand – Vol. 37

We highlight 14 stocks in Thailand that look interesting to us based on our FVMR Methodology. Portfolio changes: Four stocks remain, and 10 new...

A. Stotz Investment Research

SIS: Cloud and Cybersecurity Will Be the New Main Focus for Growth

Analyst meeting came out with positive tone. Cloud and cybersecurity businesses should grow rapidly over the next few years. Current inventory...

Pi Securities PCL, Thailand