THAILAND Archives | Page 24 of 57 | Smartkarma

• ACommerce Group (ACOM TB) is looking to raise about US$200m in its upcoming Thailand IPO.
• Acommerce is an ecommerce enabler providing end-to-end and ala carte ecommerce solutions for brands in Southeast Asia (SEA). 
• Acommerce has been a key beneficiary of COVID, however, has been recording unexpectedly weak margins, suggesting that it does a lot of logistical heavy lifting. 

• Higher EPS and TP but still a HOLD
• Targets 10% card spending growth, 7% personal loan growth and THB11.5b title loans
• Better card spending but weak loan growth in 1Q22
• Raised FY22-23F earnings due to lower credit cost

• Maintain our BUY call with a target price of Bt162. Our valuation is derived from the Gordon Growth Model (ROE 6.6%,growth 2%), implying 0.6x PBV’22E, -1SD to its five-year means. 
• With its focus on corporate and international loans, BBL will likely suffer fewer impacts when compared with its competitor from elevated household debts and a conflict between Russia and Ukraine.
• Net profit will continue to rise further in 2022-23, supported by solid fundamentals and an improvement in economic activity.

• The Information Memorandum is out regarding the True Corp Pcl (TRUE TB) / Total Access Communication (DTAC TB) merger.
• The shareholder meetings for both companies will be held on the 4 April, with a tentative listing date of the NewCo late September.
• The IFAs for both companies are of the opinion that shareholders should approve the Amalgamation. 

• Maintain BUY rating with a TP of Bt8.30, based on DCF (WACC of 9.8% and Terminal Growth of 3.5%), implying 25.9xPE’23. We see attractive play on reopening, upon the progress 
• Its 4Q21 net loss was at Bt46m, which continued for 7 consecutive quarters, attributed mainly to its operation below EBIT breakeven level.
• SPA’s 2021 net loss was at  Bt287m, pressured by weak revenue growth, which drop 61%YoY upon brief closure of spas and massages in Jan 21 and end of Apr-Sep 21.

• New TP of THB13, Top Pick LH (BUY)
• Residential division has yet to fully recover
• Expect lower gains from sale Mention this in the textof industrial properties
• Improvement in commercial property/hospitality unit

• Keep Buy, new TP of THB10.8
• Healthy Jan-Feb 2022 presales
• Major launches planned for 3Q22
• Expect solid pick-up in non-core businesses

We keep our Buy rating on LH as we expect all its businesses to stage significant rebounds this year, and for its attractive 6.6% FY22E dividend yield. We forecast FY22 earnings to grow 22% YoY and FY23 by another 10% YoY. 2H22 is likely to be strong with the bulk of launches in 3Q while overall performance should peak in the 4Q high season. Risks to our estimates include the macro outlook, rising inflation given a surge in energy prices, labour shortages and possible delays in launch/completion of projects. Our SOP-based TP rises 2% to THB10.80, after we fine-tune our earnings forecasts and factor in asset appreciation.

• Maintain HOLD, lower TP to THB24; Top Pick LH (BUY)
• Record-high FY21 revenue, earnings and margins
• Unexciting FY22E earnings due to high base
• Pedestrian earnings outlook for FY22-24E

• The Thai government plans to scrap pre-travel COVID-19 to boost tourism, and visitors will only be tested on arrival in Thailand – expect to have more tourists in Thailand.
• Q4 2021 revenue started to bounce higher YoY although still 50% of pre-COVID level but shows some promise. 
• Platinum Group PCL (PLAT TB)  share price went up by 24%within a year, with a 0.7x PBR to 1.02x PBR. Still early but why wait longer? 

• Maintain HOLD rating with a TP of B21.00, based on 14.36xPE’22E, which is close to -2SD of 3-years trading average. Despite expected 43% drop in 22E earnings,rising Omicron cases coupled 
• Its 4Q21 earnings was at Bt2.5bn (+791% YoY,-14%QoQ), suppressed QoQ upon weak  revenue growth, caused by lower Covid-related revenue.
• BCH’s 2021 earnings was at Bt6.8bn, grew 454%YoY, attributed to solid revenue growth (+139%YoY) and margin expansion (+17ppts), upon higher Covid-contribution.

• We maintain BUY rating and raise TP by +25% to Bt4.50 derived from 1x PBV’22E, to reflect better outlook post-COVDID crisis.
• About 98%of its hotel properties have already resumed operation by the late last year.This along with complete opening up of international borders will be the key earnings drivers for 2022 
• Maldives and Thailand international demand has shown growing trend since 2Q21 and been in continuing growth in 1Q22 following reopening countries especially in UK and Maldives.We expect strong earnings recovery 

• We downgrade to HOLD rating with a new TP of Bt38.75 derived from 28.9xPE’22E (-0.5SD of 5-Yr trading average)to factor in negative impact from stock dividend on 22E EPS growth
• COM7 announced annual cash dividend of Bt1.00 and stock dividend (Bt0.25), XD date on 11 Mar.
• We believe the dilution effect will have a negative impact on the company’s shareholders.Recurring EPS growth should drop to-38.4%YoYin 22E,down from 23.2%YoYpre-dilution,while dividend yield will also be halved to 1.2%.

• Maintain HOLD with a target price of Bt15.00. Our HOLD call reflects KTB’s slowing growth ahead and limited upside gain. Yet, a dividend yield of 4.5-4.8% for 2022-23 remains attractive.
• Management guided loan growth to moderate to 3-4% YoY in 2022. Asset quality remains manageable.
• Government expenditure will bolster Thailand’s economy in 2022. But growth potential may weaken than expected on potential impacts from higher energy prices and geopolitical uncertainties.

• After taking into account the IFA opinion, the directors of textile-play Thai Rayon Public Co Ltd (TR TB) unanimously reject Surya Kiran’s Offer. 
• Surya Kiran is offering THB 50/share for the 79.33% of shares out in Thai Rayon it does not own. The Offer Price will not be increased. 
• The Offer is currently open for acceptance and will close on the 25 March.

• Yesterday analyst meeting came out with a positive tone. We reiterate our BUY rating for M with a target price of Bt61.0 based on 25xPE’22E,Asia ex-Japan consumer staple sector average
• Management target same-stores-sales-growth (SSSG) at above 30% in 2022 from -15% in 2021.SSSG has strongly recovered at +15% in Jan-Feb 2022 supported by resuming dine-in services together with restoring consumer 
• After resuming dine-in services,GPM recovered to 66.9% in 4Q21.We believe GPM to increase to 66% in 2022E from 64.1% in 2021 supported by a higher revenue contribution from dine-in service

• Maintain HOLD rating with a TP of Bt33.50, based on 19.14xPE’22E,which is pegged to -1SD of 3-years trading mean.Despite drastic drop in 22E profit, its strategic location, combined with undemanding 
• Its 4Q21 net profit was at Bt283m (+96%YoY, -42%QoQ), given weak QoQ revenue growth, and margin contraction due to lowered Covid-19 related contribution.
• RJH’s 2021 earnings was at Bt1.01bn, implying +145% YoY, mainly attributed to higher contribution from Covid-related services.

• 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 1Q22 earnings is expected to soften QoQ due to seasonal weak contribution from Hydro projects, RAC (Australia), and weak domestic SPP margins. The earnings should pick up 2Q22 onwards
• The 2022 net profit growth will be supported by 1)full year profit recognition of 377MWe projects added in 2021 (Yandin&collector wind farm) and 2) 150MWe new project COD in 2022.

• We upgrade COM7 to BUY and raise TP by 34% to Bt92.50 derived from 34.5xPE’22E (+0.25SD of 5-Yr trading average).Our rating reflects a positive outlook toward its strong potential growth 
• We downgrade our target PE to 34.5xPE’22 (+0.25SD) from 39.0xPE’22 (+1SD) previously to reflect declining earnings momentum. We believe recurring earnings growth at CAGR of 45% over past two years 
• We expect strong earnings growth in 2022 at +23% driven by strong iPhone 14 sales due to growing 5G device penetration.

• We reiterate our BUY rating for ICHI with a target price of Bt13.0 based on 25xPE’22E, the five-years average trading range and close to Thailand consumer staples.
• We expect strong earnings momentum to continue to grow both YoY and QoQ in 1Q22 and continue in 2Q22 from high season quarter.Currently,ICHI trading at 20xPE’22E cheaper than its five-years
• We expect earnings to grow at CAGR of11%in the next three year to reach Bt742m by 2024 supported by launching new products and new markets expansion,as well as margin expansion 

• Yesterday analyst meeting came out with a positive tone.We maintain BUY rating with a target price of Bt21.0, derived from 18xPE’22E,+1SD from three years average trading range or 50% discount
• We expect earnings to grow to Bt764m in 2024E or +19%CAGR (2022-24E) from -5%CAGR(2019-21), driven by 1) solid SSSG and online sales, 2) solid recovery in rental income
• To implement a more aggressive strategy after COVID-19, the management aims to expand 1-2 new stores per year from 2023 onwards.

• The analyst meeting came out in a negative tone, as the projected rise in gas cost will pressure the SPP margins and drag the earnings in 1H22.  
• We expect 1Q22 recurring profit to soften due to continued rise of fuel cost. The earnings should bottom out in 1H22 and pick up gradually 3Q22 onwards.
• The SPP gas price has rose to Bt336/ MMBTU in 4Q21 compared to Bt268/MMBTU in 3Q21.According to management guidance the gas prices are further expected to rise near Bt450/MMBTU level

• U/G to BUY on expected aggressive expansion
• SSSG+12%, restaurant sales only 6% below FY19
• RevPar to double YoY in FY22E
• Key risks are Ukraine conflict and rising food costs

• Upgrade to BUY on hotel and restaurant rebounds
• Prominent hotel recovery in Europe with risks
• Positive same-store sales, with no more lockdowns
• Key risks are Covid and rising food costs

• Yesterday analyst meeting came out with a negative tone.We expect TOA net profit in 1H22to weaken YoY due to an increase in raw material cost in spite of upward selling 
• We expect earnings drop both QoQ and YoY in 1Q22 caused by squeezed GPM from rising raw material cost. In contrast,revenue will be expanded YoY supported by demand for painting 
• We revised down 2022-23 earnings by 3-7% in 2022-23E to factor in further decrease in gross profit margin caused by a rise in material cost following spike in oil price.

• Bangkok Bank Public has underperformed Kasikornbank PCL over the short-term and over the last year as well. The price ratio is now trading at the low end of the recent range.
• The number of NVDRs issued on Bangkok Bank Public (BBL TB) have continued to decrease while increasing on Kasikornbank PCL (KBANK TB). 
• Bangkok Bank Public (BBL TB) trades cheaper than Kasikornbank PCL (KBANK TB) and there could outperform in the short-term.