Thai Equity - Bottom-up - Equities, Pi Securities PCL, Thailand

Pi Research

Thai Equity - Bottom-up - Equities

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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

<p>We maintain our BUY rating with a new target price of Bt9.6 based on 20xPE’20E which is Thai consumer discretionary sector.</p><p>Update:</p><ul>
<li>Expect AUCT to post 1Q20 earnings of Bt69m (+16%YoY, -7%QoQ), driven by rising NPL and seasonal factor.</li>
<li>2Q20 performance will be the bottom of the year and it should be an opportunity to accumulate for 7% dividend yield.</li>
<li>We are still positive to its  2020-21 earnings outlook on the backs of industrial growth, the company’s growing use of mobile application to support auction activities and potential growth from new customer segment.</li>
</ul>

We maintain our BUY rating with a new target price of Bt9.6 based on 20xPE’20E which is Thai consumer discretionary sector.Update:
Expect AUCT to post 1Q20 earnings of Bt69m (+16%YoY, -7%QoQ), driven by rising NPL and seasonal factor.
2Q20 performance will be the bottom of the year and it should be an opportunity to accumulate for 7% dividend yield.
We are still positive to its  2020-21 earnings outlook on the backs of industrial growth, the company’s growing use of mobile application to support auction activities and potential growth from new customer segment.


<p><strong>We initiate coverage of AUCT with a BUY rating, based on a target price of Bt11.5, which is derived from 24xPE’20E, in line with the valuation of Thailand’s consumer discretionary sector.</strong></p>
<p><strong>The story:</strong></p>
<div>•Simple business model with high margins</div>
<div>•Rising NPL rate to boost vehicle volume</div>
<div>•Auto sector still looks supportive</div>
<div>•New S curve for AUCT</div>
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</div>
<p><strong>Risks: </strong>Reliance on a few suppliers</p>
<div>
<strong>Background:</strong> AUCT Public Company Limited (AUCT) provides services as an intermediary that conducts auctions for all types of property, as well as other auction-related services such as transportation of auctioned properties and finding bidders by coordinating with financial firms. Currently, the company has 27 storage units for auctioned property located in 26 provinces across Thailand. Moreover, it has 14 venues that can support every type of auction event.</div>

We initiate coverage of AUCT with a BUY rating, based on a target price of Bt11.5, which is derived from 24xPE’20E, in line with the valuation of Thailand’s consumer discretionary sector.
The story:
•Simple business model with high margins
•Rising NPL rate to boost vehicle volume
•Auto sector still looks supportive
•New S curve for AUCT

 

Risks: Reliance on a few suppliers

Background: AUCT Public Company Limited (AUCT) provides services as an intermediary that conducts auctions for all types of property, as well as other auction-related services such as transportation of auctioned properties and finding bidders by coordinating with financial firms. Currently, the company has 27 storage units for auctioned property located in 26 provinces across Thailand. Moreover, it has 14 venues that can support every type of auction event.

AUCT: Safe-Haven Stock in the Thai Market

Thailand

Union Auction PCL is an automobile open auction business in Thailand.  The Company acts as an intermediary between buyers and sellers, on behalf of the private sector-in the form of companies, retail stores and the general public.

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Union Auction (AUCT TB)

AUCT: Expected 1Q20 Earnings to Grow YoY

We maintain our BUY rating with a new target price of Bt9.6 based on 20xPE’20E which is Thai consumer discretionary sector.Update: Expect AUCT to...

Pi Securities PCL, Thailand

AUCT: Safe-Haven Stock in the Thai Market

We initiate coverage of AUCT with a BUY rating, based on a target price of Bt11.5, which is derived from 24xPE’20E, in line with the valuation of...

Pi Securities PCL, Thailand

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