Category

Thailand

Thailand: Thai Life Insurance and more

By | Daily Briefs, Thailand

In today’s briefing:

  • Thai Life Insurance Pre-IPO – The Negatives – Lacks Growth

Thai Life Insurance Pre-IPO – The Negatives – Lacks Growth

By Sumeet Singh

  • Thai Life Insurance is looking to raise up to US$1bn in its upcoming Thailand IPO.
  • Thai Life Insurance is one of the largest life insurance companies in Thailand, third by assets. As of Mar 2022, it had 64,000 insurance agents.
  • In this note, we will talk about the not so positive aspects of the deal.

Before it’s here, it’s on Smartkarma

Thailand: Thai Life Insurance and more

By | Daily Briefs, Thailand

In today’s briefing:

  • Thai Life Insurance Pre-IPO – The Positives – Resilient Performance with a Changing Product Mix

Thai Life Insurance Pre-IPO – The Positives – Resilient Performance with a Changing Product Mix

By Sumeet Singh

  • Thai Life Insurance is looking to raise up to US$1bn in its upcoming Thailand IPO.
  • Thai Life Insurance is one of the largest life insurance companies in Thailand, third by assets. As of Mar 2022, it had 64,000 insurance agents.
  • In this note, we talk about the positive aspects of the deal.

Before it’s here, it’s on Smartkarma

Thailand: Bangkok Aviation Fuel Services and more

By | Daily Briefs, Thailand

In today’s briefing:

  • BAFS : Recovery Phase Has Kicked Off

BAFS : Recovery Phase Has Kicked Off

By Pi Research

  • Maintain BUY recommendation for BAFS with a target price of Bt34.0. Business performance are expected to turn profit by 3Q22, driven by recovery in aviation fuel services volume along
  • BAFS report 1Q22 net loss at Bt77m, the smallest loss in the past eight quarters. The result came out slightly above our expectation.
  • The least loss in the past eight quarters supported by dividend income recognition worth Bt50m from power plant business in Japan (acquired in 4Q21)and an increase in aviation fuel volume

Before it’s here, it’s on Smartkarma

Thailand: Jaymart PCL and more

By | Daily Briefs, Thailand

In today’s briefing:

  • SET50 Index Rebalance Preview: Two High Probability Changes; One Low

SET50 Index Rebalance Preview: Two High Probability Changes; One Low

By Brian Freitas


Before it’s here, it’s on Smartkarma

Thailand: Digital Telecommunications Infrastructure Fund and more

By | Daily Briefs, Thailand

In today’s briefing:

  • Digital Telecommunications Infrastructure Fund Placement – Routine Trim Down from Parent

Digital Telecommunications Infrastructure Fund Placement – Routine Trim Down from Parent

By Clarence Chu


Before it’s here, it’s on Smartkarma

Thailand: Energy Absolute and more

By | Daily Briefs, Thailand

In today’s briefing:

  • EA: Awaiting EV & ESS Business Profit

EA: Awaiting EV & ESS Business Profit

By Pi Research

  • Last week analyst meeting came out in a neutral tone.We maintain the HOLD rating due to demanding valuation.Our target price of Bt80.0, is derived using SOTP methodology, implying 43x PE’22E.
  • Expect the 2Q22 earnings to grow both YoY and QoQ, on the back of 1) higher EV sales 2) better solar power plant operation and 3) improving biodiesel sales.
  • The company has secured order for 87 E-buses to be delivered in 2Q22 to Lotte group.And further target a sales of 1,000 buses in 2H22, and 2,500 to 3,000 units

Before it’s here, it’s on Smartkarma

Thailand: Synnex Thailand, Electricity Generating and more

By | Daily Briefs, Thailand

In today’s briefing:

  • SYNEX: Maintain Healthy 22E Growth Despite Uncertainties
  • EGCO: Clean Energy Transition to Relegate ESG Concerns

SYNEX: Maintain Healthy 22E Growth Despite Uncertainties

By Pi Research

  • Maintain our BUY recommendation with TP of Bt29.75,derived from 27.0xPE’22 (+2SD of average 10-yr trading). Yesterday’s analyst meeting came out with neutral tone. While we are cautious of the inflationa
  • Management affirms that weakening consumer demand, shortages caused by China lockdowns and Russo-Ukrainian War, and weakening Baht will not impact SYNEX’s 2022 performance.
  • Management maintains their guidance of +15% revenue growth YoY in 2022, but admits post-2022 top-line growth will not match the levels seen during Covid period (2020-21).

EGCO: Clean Energy Transition to Relegate ESG Concerns

By Pi Research

  • The analyst meeting came out in a positive tone.The solid 2022 earnings outlook, decent dividend yield and lowering ESG concerns from transition to clean energy should support the stock performance.
  • Expect 2Q recurring profit to remain weak and recover thereafter, following seasonality of Paju ES, (49% stake, 1.8GWe).
  • The 2022 outlook looks solid from normalizing power plant operation (recovering demand)after COVID1-19 impact. Also,we see upside from new project acquisition as the company target to add 1.0GWe to portfolio

Before it’s here, it’s on Smartkarma

Thailand: TTW Pcl, Bangchak Corporation, Global Green Chemicals and more

By | Daily Briefs, Thailand

In today’s briefing:

  • TTW: Bleak 2022 Outlook and Recovery Thereafter
  • BCP: Solid Refinery, E&P Performance to Drive 2Q22-2022 Earnings
  • GGC: Muted 2H22 Growth Expectations

TTW: Bleak 2022 Outlook and Recovery Thereafter

By Pi Research

  • We downgrade the rating to HOLD from BUY and revise down the target price by 22% to Bt11.70 due to weak earnings outlook from low tap water demand on account 
  • 1Q22 net profit dropped to Bt613m (-13% YoY, -1% QoQ), a 4-year low. The result came out lower than our expectation.
  • The YoY earnings drop was due to decline in gross margin, higher SG&A to sales and lower share of profit from CKP.Meanwhile, revenue dropped 4% YoY dragged by lower sales 

BCP: Solid Refinery, E&P Performance to Drive 2Q22-2022 Earnings

By Pi Research

  • The analyst meeting came out in a positive tone. We maintain the BUY call based on a target price of Bt42.0, derived using SOTP methodology, implying 1.1xPBV’23E.
  • Expect the 2Q22 recurring profit to improve both YoY and QoQ on the back of solid refinery and E&P business operations.
  • The bright refinery performance should continue to excel in 2Q22 underpinned by higher GRM and full refinery utilization.

GGC: Muted 2H22 Growth Expectations

By Pi Research

  • Last week analyst meeting came out in a negative tone.Maintain HOLD rating with a new TP of Bt13.00(down 9% from previous TP) based on 1.27xPBV’22E which is close to ASIA 
  • We foresee earnings momentum to slowdown QoQ in 2Q22,pressure by change to B5 biodiesel policy,along with seasonality effect will hurt biodiesel demand despite lockdown easing, but should be mildly cushion
  • Meanwhile, FA demand in 2Q22 should remain stable backed by growing consumption of personal care products and rising prices for substitute products

Before it’s here, it’s on Smartkarma

Thailand: Carabao Group, Hana Microelectronics, Krung Thai Bank Pub, Ratch Group PCL and more

By | Daily Briefs, Thailand

In today’s briefing:

  • CBG: Time to Reload
  • HANA: Robust EV Demand Will Offset Global Smartphone Decline
  • Thai Banks Screener; Krung Thai and Kasikorn Are Our Top Picks
  • RATCH: New Capacity Addition Would Offset EPS Dilution

CBG: Time to Reload

By Pi Research

  • Last week analyst meeting came out with a positive tone regarding2022-25 earnings outlook.We reiterate our BUY rating for CBG and roll over target price to Bt125 (Previous TP is Bt115)
  • We expect GPM to bottomed out in 1Q22 caused by 1) higher revenue contribution from branded own segment (higher than average blended GPM), 2) wholesale price adjustment by 1%-3%
  • We expect CBG to show a strong performance in 2022-25 supported by recovery sales in Cambodia, solid revenue in Myanmar, breaking into the Chinese market successfully, growth opportunities in Vietnam

HANA: Robust EV Demand Will Offset Global Smartphone Decline

By Pi Research

  • Analyst meeting came out with negative tone. We maintain BUY rating at Bt57.50, based on 21.3xPE’22 (+1SD of 10-yr trading average). Our TP and 22E downwards earnings revisal by 6% 
  • 2Q22 should be lowest of the year due to declining sales from decrease by 25% in output in Chinese factories.Recommend accumulating shares,due to attractive valuations, prior to 2H22 earnings recovery.
  • 2H22 earnings will recover from GPM expansion from revenue contribution from new SiC segment (consistently gross loss until now)and better product mix in IC Thai factory.Sales should also grow moderately 

Thai Banks Screener; Krung Thai and Kasikorn Are Our Top Picks

By Victor Galliano

  • The six value oriented Thai banks all have healthy credit quality, NPL coverage and sound capital adequacy ratios; in addition, encouraging cost of risk trends support the earnings outlook
  • Of these, we believe Krung Thai Bank screens well, with its attractive pre-provision and post-provision profitability versus peers, whilst trading on relatively undemanding multiples; we also like Kasikorn Bank
  • We see TMBThanchart as an early stage “turn around” stock, especially if management can improve credit quality, and push down its cost of risk sustainably to lower levels

RATCH: New Capacity Addition Would Offset EPS Dilution

By Pi Research

  • Last week analyst meeting came out in a positive tone. We maintain the BUY call based on target price of Bt48.0 derived using SOTP methodology, implying 9.0xPE’22E.
  • The 2Q22 earnings is expected to improve QoQ from1 higher share of profit from HPC, 2)equity income from new 145MWe  gas PP COD in 1Q22.While full quarter profit from 476M 
  • We see the 2022-25 outlook promising,considering 1)Steady earnings growth supported by 28% PP operating capacity expansion and 2)rising RE proportion which will rule out the ESG concerns and support rerating

Before it’s here, it’s on Smartkarma

Thailand: Total Access Communication and more

By | Daily Briefs, Thailand

In today’s briefing:

  • Merger Arb Mondays (23 May) – True Corp, DTAC, Ramsay, VNET, Link Admin, Alliance Aviation, Yashili

Before it’s here, it’s on Smartkarma