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

<ul>
<li>We maintain BUY rating with new target price of Bt4.54,derived from 18.0xPE’23, its 5 year trading average,to reflect higher revenue recognition of land sales.</li>
<li>3Q22 earnings enhanced  YoY WHA reported  3Q22’s net profit of Bt259m (+61%YoY, -11% QoQ),lower than market expectation  by 43%.</li>
<li>The YoY expansion  of net profit drivened  by  rising revenue  to Bt1.9bn (+78%YoY) due to (1)Higher revenue of land sales to Bt961m(+612%YoY)from increasing  transfers of land in domestic and vietnam</li>
</ul>


We maintain BUY rating with new target price of Bt4.54,derived from 18.0xPE’23, its 5 year trading average,to reflect higher revenue recognition of land sales.
3Q22 earnings enhanced  YoY WHA reported  3Q22’s net profit of Bt259m (+61%YoY, -11% QoQ),lower than market expectation  by 43%.
The YoY expansion  of net profit drivened  by  rising revenue  to Bt1.9bn (+78%YoY) due to (1)Higher revenue of land sales to Bt961m(+612%YoY)from increasing  transfers of land in domestic and vietnam


<ul>
<li>We maintain BUY rating with new target price of Bt4.20 (+11% from previous TP) ,derived from 18.0xPE’22, to reflect higher revenue recognition of land sales and asset monetarization. BUY rating</li>
<li>2Q22 earnings grew YoY WHA reported  2Q22’s net profit of Bt290m(+11%YoY,-56% QoQ),lower than market expectation by 7%.The YoY increasing of net profit  was driven by rising revenue  to  Bt1.8bn (+21%YoY)</li>
<li>3Q22 earnings remain strong We expect 3Q22’s earnings to grow YoY and QoQ due to (1) higher lands tranfers in 3Q22 supported by high presales in  2Q22 at 477 rai </li>
</ul>


We maintain BUY rating with new target price of Bt4.20 (+11% from previous TP) ,derived from 18.0xPE’22, to reflect higher revenue recognition of land sales and asset monetarization. BUY rating
2Q22 earnings grew YoY WHA reported  2Q22’s net profit of Bt290m(+11%YoY,-56% QoQ),lower than market expectation by 7%.The YoY increasing of net profit  was driven by rising revenue  to  Bt1.8bn (+21%YoY)
3Q22 earnings remain strong We expect 3Q22’s earnings to grow YoY and QoQ due to (1) higher lands tranfers in 3Q22 supported by high presales in  2Q22 at 477 rai 


<ul>
<li>We maintain the BUY call and a target price of Bt3.80 derived from 18.0xPE’22  (5-year average) or implies 10% discount to Thai real estate sector. BUY rating reflects positive outlook </li>
<li>Expect Industrial estate business’s revenue (15% of total revenue in 2021) to grow 50% in 2022E supported by 1.) higher land transfer along with increasing investor traffic at site-visit, and, </li>
<li>Maintain positive outlook for utility business under WHAUP(BUY: Bt4.60)in 2022E driven by an increase in water sales volume, solar roof portfolio expansion (target to hit 300MW by 2023 from 60MW </li>
</ul>


We maintain the BUY call and a target price of Bt3.80 derived from 18.0xPE’22  (5-year average) or implies 10% discount to Thai real estate sector. BUY rating reflects positive outlook 
Expect Industrial estate business’s revenue (15% of total revenue in 2021) to grow 50% in 2022E supported by 1.) higher land transfer along with increasing investor traffic at site-visit, and, 
Maintain positive outlook for utility business under WHAUP(BUY: Bt4.60)in 2022E driven by an increase in water sales volume, solar roof portfolio expansion (target to hit 300MW by 2023 from 60MW 


WHA: Positive Outlook for Three Key Businesses in 2022

Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Thematic (Sector/Industry)

<h2>Singapore</h2><h3>Condo and HDB rents continued to rise in May21; Volumes holding up well</h3><p>The rental market for both private apartments and HDB flats in May remained robust despite the tightened Covid-19 measures and border restrictions in place. Rents for condominium units rose by 0.3% MoM and are up 7.3% YoY. They are still down 11.4% from their peak in Jan13, according to SRX. HDB rents saw a slightly higher increase of 0.7% MoM and are up 7.9% YoY. However, they are still 9.2% off their highs in Aug13. With the May increases, condo rents extended their rise to five consecutive months, while HDB rents climbed for 11 straight months. Rental volume for condo apartments increased by 1.7% MoM to an estimated 4,603 units leased in May compared with 4,527 units in Apr. The number of units rented out last month are also 39.3% higher YoY, when Singapore was in its circuit breaker period. HDB rental volume in May saw a slight drop from Apr, down 0.9% MoM to an estimated 1,686 units from 1,702 units in Apr. HDB rental volume last month is 30.4% higher Yoy, though 8.5% lower than the five-year average volume for the month of May.</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/212/219/original/image017.png?1623289645" class="editor-image img-responsive" data-smartkarma-image-id="212219"></figure><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/212/220/original/image018.png?1623289657" class="editor-image img-responsive" data-smartkarma-image-id="212220"></figure></section></section>

SingaporeCondo and HDB rents continued to rise in May21; Volumes holding up wellThe rental market for both private apartments and HDB flats in May remained robust despite the tightened Covid-19 measures and border restrictions in place. Rents for condominium units rose by 0.3% MoM and are up 7.3% YoY. They are still down 11.4% from their peak in Jan13, according to SRX. HDB rents saw a slightly higher increase of 0.7% MoM and are up 7.9% YoY. However, they are still 9.2% off their highs in Aug13. With the May increases, condo rents extended their rise to five consecutive months, while HDB rents climbed for 11 straight months. Rental volume for condo apartments increased by 1.7% MoM to an estimated 4,603 units leased in May compared with 4,527 units in Apr. The number of units rented out last month are also 39.3% higher YoY, when Singapore was in its circuit breaker period. HDB rental volume in May saw a slight drop from Apr, down 0.9% MoM to an estimated 1,686 units from 1,702 units in Apr. HDB rental volume last month is 30.4% higher Yoy, though 8.5% lower than the five-year average volume for the month of May.

ASEAN Builder's Scoop (10Jun21) - Condo/HDB Rents Continue to Rise in May21

<p><strong>We conservatively revise up total land presales in 2021 to 860 rai (+69%YoY) from our previous forecast at 780 rai as we expect business travel ban to ease in 4Q21 along with bouncing investor confident after impacted by 3rd wave of COVID-19 domestically.</strong></p><div>• Positive outlook for the group’s earnings recovery in 2021</div><div></div><div>• We anticipate earnings from power business to already bottomed out in 1Q21</div><div></div><div>• We expect 2Q21 core profit to grow both QoQ and YoY driven by increasing land transfer unit, improving revenue and equity income from utility business, high base demand in rental logistic business benefiting from COVID-19 ( contributed 1/4 of earnings in 1Q21.)</div><div></div><div>• Revising up 2021E net profit by 10% to account higher-than-expected revenue from asset monetarization</div><div></div><div>We maintain our BUY rating with a new target price after EPS upward revision  at Bt4.0 (Previous TP Bt3.80) derived from 21xPE’21E (five-year average).</div>

We conservatively revise up total land presales in 2021 to 860 rai (+69%YoY) from our previous forecast at 780 rai as we expect business travel ban to ease in 4Q21 along with bouncing investor confident after impacted by 3rd wave of COVID-19 domestically.• Positive outlook for the group’s earnings recovery in 2021• We anticipate earnings from power business to already bottomed out in 1Q21• We expect 2Q21 core profit to grow both QoQ and YoY driven by increasing land transfer unit, improving revenue and equity income from utility business, high base demand in rental logistic business benefiting from COVID-19 ( contributed 1/4 of earnings in 1Q21.)• Revising up 2021E net profit by 10% to account higher-than-expected revenue from asset monetarizationWe maintain our BUY rating with a new target price after EPS upward revision  at Bt4.0 (Previous TP Bt3.80) derived from 21xPE’21E (five-year average).

WHA: Positive Outlook for the Group’s Earnings Recovery in 2021

Thailand

WHA Corp PCL is a built-to-suit distribution center and factory developer in Thailand.

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WHA Corp Pcl (WHA TB)

WHA : 3Q22 Results Expanded YoY

We maintain BUY rating with new target price of Bt4.54,derived from 18.0xPE’23, its 5 year trading average,to reflect higher revenue recognition of...

Pi Securities PCL, Thailand

WHA : 2Q22 Results Expanded YoY

We maintain BUY rating with new target price of Bt4.20 (+11% from previous TP) ,derived from 18.0xPE’22, to reflect higher revenue recognition of...

Pi Securities PCL, Thailand

WHA: Positive Outlook for Three Key Businesses in 2022

We maintain the BUY call and a target price of Bt3.80 derived from 18.0xPE’22 (5-year average) or implies 10% discount to Thai real estate sector....

Pi Securities PCL, Thailand

ASEAN Builder's Scoop (10Jun21) - Condo/HDB Rents Continue to Rise in May21

Condo/HDB rents continue to rise in May21; LHN on the lookout for more Co-living properties; WHA bets on Phuket reopening; ALI/AREIT property/share...

SCCM Asia Research

WHA: Positive Outlook for the Group’s Earnings Recovery in 2021

We conservatively revise up total land presales in 2021 to 860 rai (+69%YoY) from our previous forecast at 780 rai as we expect business travel ban...

Pi Securities PCL, Thailand

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