Thailand: CP FOODS, GFPT Public Company Limited, Home Product Center, PTT E&P, Siam Cement, TMBThanachart Bank, VGI PCL and more

• More positive sentiment
• Vietnam subsidiary to list on HCM stock market
• CPV’s sales growing
• Improving swine prices to support earnings recovery

Upgrade to BUY from HOLD with TP of THB27.9. The upcoming IPO of subsidiary CP Vietnam (CPV) will give it more flexibility to raise funds for further business expansion as well as unlock value of CPV. This is a new development creating positive sentiment on CPF. CPF’s 1Q22 resultsare likely to be lacklustre but CPF’s share price dropped 5% in the past three months possibly pricing in the weak 1Q22 profit outlook. Besides, we see prospects for improvement in 2Q22 from the favourable livestock prices.

• We see upside to guidance; raising our earnings, TP
• 1Q22 sales growth likely driven by volume and price
• Recovery in gross margin to push profit higher
• Better prospects

• Encouraging 1Q22E recovery, maintain BUY
• Sales and occupancy rebounds drive earnings growth
• Inflationary pressures present but manageable
• Positive earnings bias

• We expect PTTEP to post 1Q22 net profit of Bt9.4bn (-18% YoY, -11% QoQ). Despite significant growth in sales volume and product selling price
• Excluding the one-time items, the recurring profit is expected to be Bt16.6bn (+228% YoY,-3% QoQ). YoY surge will be underpinned  by a 11% growth in sales volume and a 25% 
• Bright 2022 outlook from crude oil & gas price surge. We see the volatility to continue considering continued Russia-Ukraine war tensions, Reserve oil release by IEA members and COVID-19 

• Maintain BUY rating with a TP of Bt445.00 based on 13.7xPE’22E which is close to its 10-years trailing average.
• We foresee 1Q22 core profit to be the bottom quarter at Bt7bn (-53%YoY,-2%QoQ), pressured by tighter chemical spreads after naphtha price soared from higher oil price.
• We expect earnings recovery from 2Q22 onwards, following improve chemical spreads driven by prices catching up with rising costs, plus better CBM and packaging unit.

• We reiterate our BUY rating with a target price of Bt1.60. Our BUY call reflects (1) steady growth ahead; (2) adequate reserves against new NPLs, and (3) compelling valuation.
• Net profit in 1Q22 came in at Bt3.2bn (+15% YoY, +14% QoQ) and was 13% higher than our expectation on lower-than-expected personal expenses.
• Asset quality was resilient. The NPL ratio decreased to 2.7% in 1Q22 and the loan loss coverage ratio was higher to 131.6% to cope with uncertainties ahead

• We maintain BUY rating for VGI with the new target price of Bt6.20 (Previous TP: Bt6.50), derived from SOTP method or 50% premium to Thai media peers.  
• We anticipate revenue streams from media and commercial space (recently started to manage by NINE),to retreat to 70% of the level we have seen during pre-pandemic by late 2QFY23 (July’22-September’22)
• The management revenue target in FY2023 at Bt6.5bn-7.0bn is fairly optimistic as we anticipate OOH media revenue to not recover that quickly.