Head of Research, Krungthai XSpring

Waraporn Wiboonkanarak

Head of Research

A full service Thai brokerage

Krungthai XSpring

Krungthai XSpring is a full service broker. The company provides a wide range of investment services such as Securities Brokerage, Derivative Agent Business, Securities Borrowing and Lending, Securities Trading, Underwriting, Financial Advisory, Wealth Advisory, Private Fund Management and International Markets Securities Trading. 

In terms of credibility, Fitch Ratings has assigned Krunghtai XSpring a long-term rating of AA- and a national short-term rating of F1+ with stable outlook.

Equity Bottom-Up

<ul><li>We maintain a Neutral rating, with a new fair value of Bt149.06 (vs. Bt138.23 previously), following the adjustments to the macroeconomic variables, in line with our house view assumptions.</li><li>The valuation metrics suggest that the stock is fundamentally undervalued (with upside of 8.4% to the current share price); however, this is offset by slow earnings growth prospects and a neutral tactical view.</li><li>BBL’s 2Q24 net profit beat our forecast by 17% at Bt11.8bn, growing 4.5% YoY and 12.2% QoQ.</li></ul>

We maintain a Neutral rating, with a new fair value of Bt149.06 (vs. Bt138.23 previously), following the adjustments to the macroeconomic variables, in line with our house view assumptions.The valuation metrics suggest that the stock is fundamentally undervalued (with upside of 8.4% to the current share price); however, this is offset by slow earnings growth prospects and a neutral tactical view.BBL’s 2Q24 net profit beat our forecast by 17% at Bt11.8bn, growing 4.5% YoY and 12.2% QoQ.

Bangkok Bank - Upbeat 2Q24 Earnings but Weaker Asset Quality

<ul><li>We maintain our Neutral rating, based on the earnings yield and the new required rate of return of 16.7%.</li><li>The valuation metrics suggest that the stock is fundamentally undervalued, which is offset by an expected low CAGR of 3.4% in 2024-26E.</li><li>Meanwhile, the tactical view is neutral</li></ul>

We maintain our Neutral rating, based on the earnings yield and the new required rate of return of 16.7%.The valuation metrics suggest that the stock is fundamentally undervalued, which is offset by an expected low CAGR of 3.4% in 2024-26E.Meanwhile, the tactical view is neutral

Bangkok Bank - 2Q24E Net Profit Expected to Fall YoY and QoQ

Thematic (Sector/Industry)

<ul><li>The seven commercial banks we are monitoring reported a combined net profit of Bt53.5bn in 2Q24, up 2.7% YoY but down 11.2% QoQ.</li><li>Overall, loan growth remained stagnant as banks continued to operate cautiously.</li><li>Meanwhile, net interest margins (NIM) faced pressure, albeit to a lesser extent, from the repricing of fixed deposits. </li></ul>

The seven commercial banks we are monitoring reported a combined net profit of Bt53.5bn in 2Q24, up 2.7% YoY but down 11.2% QoQ.Overall, loan growth remained stagnant as banks continued to operate cautiously.Meanwhile, net interest margins (NIM) faced pressure, albeit to a lesser extent, from the repricing of fixed deposits. 

<ul><li>Although Asian bourses were able to rebound on the back of tech stocks, alongside the jump in US markets after bond yields decreased, the SET only managed to edge up due to a lack of new factors to boost it.</li><li>Meanwhile, ADVANC and banking stocks fell, and foreign investors kept selling for a third day amid continued thin volume.</li><li>The index has an unclear direction after continuing to swing sideways in a narrow range, but we expect upward movement because it attempted to rise despite facing selling pressure.</li></ul>

Although Asian bourses were able to rebound on the back of tech stocks, alongside the jump in US markets after bond yields decreased, the SET only managed to edge up due to a lack of new factors to boost it.Meanwhile, ADVANC and banking stocks fell, and foreign investors kept selling for a third day amid continued thin volume.The index has an unclear direction after continuing to swing sideways in a narrow range, but we expect upward movement because it attempted to rise despite facing selling pressure.

Technical Analysis - The Trend - Feb 16, 2024

<ul><li>The SET traded within a narrow range throughout the day, reflecting subdued sentiment attributed to the Chinese New Year festival.</li><li>Furthermore, with most Asian bourses closed, trading activity remained sluggish.</li><li>Large cap stocks experienced limited fluctuations, resulting in an index outlook devoid of clear signals. However, foreign investors turned to buy slightly.</li></ul>

The SET traded within a narrow range throughout the day, reflecting subdued sentiment attributed to the Chinese New Year festival.Furthermore, with most Asian bourses closed, trading activity remained sluggish.Large cap stocks experienced limited fluctuations, resulting in an index outlook devoid of clear signals. However, foreign investors turned to buy slightly.

Thailand

Bangkok Bank Public Company Limited provides various banking and financial services including commercial, consumer, credit card, and mortgage lending, international trade financing, investment banking, and securities services.

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Bangkok Bank Public (BBL TB)

Bangkok Bank - Upbeat 2Q24 Earnings but Weaker Asset Quality

We maintain a Neutral rating, with a new fair value of Bt149.06 (vs. Bt138.23 previously), following the adjustments to the macroeconomic...

Krungthai XSpring

Bangkok Bank - 2Q24E Net Profit Expected to Fall YoY and QoQ

The valuation metrics suggest that the stock is fundamentally undervalued, which is offset by an expected low CAGR of 3.4% in 2024-26E. Meanwhile,...

Krungthai XSpring

Industry Update - Banking: Jul 23, 2024

The seven commercial banks we are monitoring reported a combined net profit of Bt53.5bn in 2Q24, up 2.7% YoY but down 11.2% QoQ.

Krungthai XSpring

Technical Analysis - The Trend - Feb 16, 2024

The index has an unclear direction after continuing to swing sideways in a narrow range, but we expect upward movement because it attempted to rise...

Krungthai XSpring

Technical Analysis - FEBRUARY 13, 2024

The SET traded within a narrow range throughout the day, reflecting subdued sentiment attributed to the Chinese New Year festival.

Krungthai XSpring

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