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

4Q17 EPS was Bt0.018 (-57%YoY and -57% QoQ. The company produced a 2017 EPS of Bt0.14, which was up 17% YoY and was 12% below our full-year forecast.<ul>
<li>4Q17 gross profit margin dropped 240 basis points YoY to 23.8%</li>
<li>Higher than expected in SG&amp;A to sales of 18.4%, the highest since 1Q16</li>
<li>2017 net profit rose 17% YoY supported by 37% increase in revenue</li>
<li>Announced full-year dividend payment of Bt0.12 per share. XD on 16 May</li>
</ul>We downgraded WICE  from “BUY” to “HOLD” to reflect limited upside from our target…

4Q17 EPS was Bt0.018 (-57%YoY and -57% QoQ. The company produced a 2017 EPS of Bt0.14, which was up 17% YoY and was 12% below our full-year forecast.
4Q17 gross profit margin dropped 240 basis points YoY to 23.8%
Higher than expected in SG&amp;A to sales of 18.4%, the highest since 1Q16
2017 net profit rose 17% YoY supported by 37% increase in revenue
Announced full-year dividend payment of Bt0.12 per share. XD on 16 May
We downgraded WICE  from “BUY” to “HOLD” to reflect limited upside from our target…

WICE: Fall in Margin Caused a YoY Drop in 4Q17 Earnings

We initiate coverage on WICE with a BUY rating, based on a target price of Bt7.4, which is derived from the PE ratio for the Thailand Transportation sector, implying a 34.5x PE’18E.The Story:<ul><li>HK logistics acquisition to tap lucrative China third-party market</li><li>Takeovers plot upbeat course for freight forwarding business</li><li>Special license to boost efficiency and sales in customs brokerage</li><li>Added warehouses to unlock upside for logistics businesses</li></ul>Risks:<ul><li>Higher than expected in fluctuation in freight rates</li><li>Intensity of freight forwarding businesses in both domestic and overseas. </li></ul>Background:Established in 1993, WICE Logistics Public Company Limited provides international logistics services. Combined with its two subsidiaries, Sun Express (Thailand) Company Limited and Singapore based Sun Express Logistics Proprietary  Limited (Pte. Ltd.), the company is involved in export and import transactions by providing sea and air freight services, and related services, such as customs clearance, domestic transport and warehousing. The company’s major trade routes include exporting partners in China, US, Japan, Singapore and Hong Kong. Its main operations take place at Laem Chabang, Chonburi, the largest port in Thailand, where WICE’s warehouses are located.

We initiate coverage on WICE with a BUY rating, based on a target price of Bt7.4, which is derived from the PE ratio for the Thailand Transportation sector, implying a 34.5x PE’18E.The Story:HK logistics acquisition to tap lucrative China third-party marketTakeovers plot upbeat course for freight forwarding businessSpecial license to boost efficiency and sales in customs brokerageAdded warehouses to unlock upside for logistics businessesRisks:Higher than expected in fluctuation in freight ratesIntensity of freight forwarding businesses in both domestic and overseas. Background:Established in 1993, WICE Logistics Public Company Limited provides international logistics services. Combined with its two subsidiaries, Sun Express (Thailand) Company Limited and Singapore based Sun Express Logistics Proprietary  Limited (Pte. Ltd.), the company is involved in export and import transactions by providing sea and air freight services, and related services, such as customs clearance, domestic transport and warehousing. The company’s major trade routes include exporting partners in China, US, Japan, Singapore and Hong Kong. Its main operations take place at Laem Chabang, Chonburi, the largest port in Thailand, where WICE’s warehouses are located.

WICE: Ultimate Logistics Provider Expands Revenue Horizons

Thailand

WICE Logistics Public Company Limited provides freight shipping services. The Company offers marine freight shipping, air freight shipping and trucking services.

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Wice Logistics (WICE TB)

WICE: Fall in Margin Caused a YoY Drop in 4Q17 Earnings

4Q17 EPS was Bt0.018 (-57%YoY and -57% QoQ. The company produced a 2017 EPS of Bt0.14, which was up 17% YoY and was 12% below our full-year...

Pi Securities PCL, Thailand

WICE: Ultimate Logistics Provider Expands Revenue Horizons

We initiate coverage on WICE with a BUY rating, based on a target price of Bt7.4, which is derived from the PE ratio for the Thailand...

Pi Securities PCL, Thailand

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