Waraporn Wiboonkanarak

Krungthai XSpring

Equity Bottom-Up

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<p>Company Update</p>
<h2>TTW Plc. (TTW)</h2>
<p>Energy &amp; Utilities</p>
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<h3>Resilient but no excitement</h3>
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<p>TTW’s earnings from the tap water business have been steady despite the COVID-19 outbreak. The expansion of bottom-line growth should be driven by CKP’s earnings upcycle on a stronger contribution from Xayaburi. With little excitement over its operation, TTW is likely to lag behind the broader market. The dividend yield of 4-5% p.a. should be appealing for those seeking a defensive play.</p>
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<p><strong>Tripped up by</strong>…</p>
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<p>Earnings Review</p>
<h2>TTW Plc. (TTW)</h2>
<p>Energy &amp; Utilities</p>
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<h3>Upbeat 3Q20 results on CKP’s fabulous performance</h3>
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<p>TTW’s 3Q20 earnings beat our forecast thanks to the seasonal peak of CKP’s performance. We, however, keep our full-year earnings estimate unchanged on CKP’s weak earnings in 4Q20E due to seasonality. Our Buy rating is retained thanks to TTW’s resilient tap water business and its stable cash flow, which will enable it to maintain a yield of 5%.</p>
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<p><strong>3Q20 results above view on CKP</strong><br>TTW reported a net…</p>
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<p>Company Update</p>
<h2>TTW Plc. (TTW)</h2>
<p>Energy &amp; Utilities</p>
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<h3>Uplift rating to Buy</h3>
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<p>TTW is expected to post an outstanding net profit in 3Q20E thanks to a big jump in shared profit from CKP, whose earnings should pick up strongly during the high season. The performance of the tap water business should remain resilient, with the secured and stable cash flow to enable TTW to offer an attractive dividend yield of 5%. We lift our rating to Buy given the ample upside to our 2021E SOTP-based target…</p>
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<p>Earnings Review</p>
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<h2>TTW Plc. (TTW)</h2>
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<p>Energy &amp; Utilities</p>
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<h3>2Q20 NP within expectation</h3>
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<p>TTW’s 2Q20 results were in line with the expectation on the resilient tap water business, weighed down by the loss contribution from CKP. The 2H20E earnings are likely to pick up strongly thanks to the seasonal rebound of CKP’s operation. Our Hold rating is maintained given its sustained and attractive yield of nearly 5% annually.</p>
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<p><strong>2Q20 results in line</strong><br>TTW posted an in-line NP of Bt694mn (EPS…</p>
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Chanon Inpithuk

TTW Pcl

<div>Kasikorn Securities <br>2 July 2020</div>
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<div><strong>Dependent on water levels</strong></div>
<div>► TTW is the largest private tap water operator with capacity of 1,076k</div>
<div>cum/day and a diversified mix of residential and industrial clients.</div>
<div>► Diversified portfolio of power and water. TTW owns a 25% stake of CKP,</div>
<div>a hydropower, gas-fired and solar power plant operator.</div>
<div>► Initiate coverage with a Neutral rating and TP of Bt13.30. An extension of</div>
<div>PTW’s contract could be a long-term earnings growth driver.</div>
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<div>Investment highlights</div>
<div>► Among…</div>
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Thailand

TTW PCL (Formerly known as "Thai Tap Water") is a water utility company that supplies water in the provinces of Nakhon Pathom and Samut Sakhon, and Pathumthani-Rangsit area.