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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

Taokaenoi Food & Marketing / Equity Bottom-Up

We initiate coverage on TKN with a BUY rating and a 1H19E target price of Bt19.0 at 27.7x PE, which is 1.0x PEG of the average of the company’s earnings growth for 2018-20E.
The story:
<ul>
<li>Prominent brand has plenty of space to occupy on snack street</li>
<li>Solid growth momentum intact</li>
<li>New factory bolsters readiness for scalability</li>
<li>Short-term earnings hiccup is an investment opportunity</li>
<li>Expect a 28% CAGR for earnings in 2018-20E</li>
</ul>
Risks:
<ul>
<li>Raw materials - seaweed price fluctuations</li>
<li>Exchange rates in flux</li>
<li>Highly competitive industry</li>
</ul>

We initiate coverage on TKN with a BUY rating and a 1H19E target price of Bt19.0 at 27.7x PE, which is 1.0x PEG of the average of the company’s earnings growth for 2018-20E.
The story:

Prominent brand has plenty of space to occupy on snack street
Solid growth momentum intact
New factory bolsters readiness for scalability
Short-term earnings hiccup is an investment opportunity
Expect a 28% CAGR for earnings in 2018-20E

Risks:

Raw materials - seaweed price fluctuations
Exchange rates in flux
Highly competitive industry


TKN: 태국 대표 김 스낵, 글로벌 확장 계획에 박차