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

We initiate coverage of AI with a BUY rating and a target price of Bt1.94, based on a sum-of-the-parts valuation consisting of AI’s insulator and engineering businesses at Bt1.28 (pegged to the Asia ex-Japan Energy sector mean of 9.5x PE’20E), and its stake in AIE at Bt0.66, derived from market value as of July 10, 2019.
The story:
<ul>
<li>Long-term relationships with state enterprises</li>
<li>Growing demand to support three-year growth</li>
<li>Gross margin recovery in 2Q19E</li>
<li>Government policy to support biodiesel demand</li>
<li>Upside from pure glycerin refinery project</li>
</ul>
Risks:
<ul>
<li>Crude palm oil price volatility</li>
<li>Foreign exchange rate fluctuation</li>
</ul>

We initiate coverage of AI with a BUY rating and a target price of Bt1.94, based on a sum-of-the-parts valuation consisting of AI’s insulator and engineering businesses at Bt1.28 (pegged to the Asia ex-Japan Energy sector mean of 9.5x PE’20E), and its stake in AIE at Bt0.66, derived from market value as of July 10, 2019.
The story:

Long-term relationships with state enterprises
Growing demand to support three-year growth
Gross margin recovery in 2Q19E
Government policy to support biodiesel demand
Upside from pure glycerin refinery project

Risks:

Crude palm oil price volatility
Foreign exchange rate fluctuation


Asian Insulators

AI: 電気絶縁体の地域リーダー