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 12M FV of Bt150.00, based on the earnings yield method and a required return of 16.6%.</li><li>The valuation metrics indicate that the stock is fully valued in the short term, while the long-term performance is expected to grow at a moderate level, alongside the tactical risk remaining neutral</li><li>KBANK reported a net profit of Bt11.9bn for 3Q24, up 6% YoY but down 5% QoQ, in line with both our and the market expectations.</li></ul>

We maintain a Neutral rating with a 12M FV of Bt150.00, based on the earnings yield method and a required return of 16.6%.The valuation metrics indicate that the stock is fully valued in the short term, while the long-term performance is expected to grow at a moderate level, alongside the tactical risk remaining neutralKBANK reported a net profit of Bt11.9bn for 3Q24, up 6% YoY but down 5% QoQ, in line with both our and the market expectations.

Kasikornbank - In-Line 3Q24 Earnings; Balance Sheet Cleanup Expected to Be Completed in 2024E

<ul><li>We maintain an Outperform rating, with a new fair value of Bt148.87 (from Bt142.37) after adjusting the macroeconomic variables according to our house view assumptions.</li><li>The valuation metrics indicate that the stock is undervalued in terms of the fundamentals (with 16.3% upside vs. the current price), which is offset by the moderate profit growth trend and the neutral tactical view.</li><li>KBANK’s 2Q24 net profit beat our forecast by 5% at Bt12.6bn, up 15.1% YoY but down 6.1% QoQ, given higher-than-expected non- interest income.</li></ul>

We maintain an Outperform rating, with a new fair value of Bt148.87 (from Bt142.37) after adjusting the macroeconomic variables according to our house view assumptions.The valuation metrics indicate that the stock is undervalued in terms of the fundamentals (with 16.3% upside vs. the current price), which is offset by the moderate profit growth trend and the neutral tactical view.KBANK’s 2Q24 net profit beat our forecast by 5% at Bt12.6bn, up 15.1% YoY but down 6.1% QoQ, given higher-than-expected non- interest income.

Kasikornbank - 2Q24 NP Beat Forecast by 5%; Stable Asset Quality

<ul><li>We maintain an Outperform rating, based on the earnings yield method, with a required rate of return of 14.4%.</li><li>The valuation metrics indicate potential upside of 13.4% to the fair price.</li><li>The normalization of credit costs will continue to support earnings growth; KBANK's EPS is expected to show a CAGR of 9.5% in 2024- 26E. </li></ul>

We maintain an Outperform rating, based on the earnings yield method, with a required rate of return of 14.4%.The valuation metrics indicate potential upside of 13.4% to the fair price.The normalization of credit costs will continue to support earnings growth; KBANK's EPS is expected to show a CAGR of 9.5% in 2024- 26E. 

Kasikornbank - 2Q24E Net Profit Growth YoY and QoQ

<ul><li>We initiate our coverage on KBANK with an Outperform rating and a 12M FV of Bt142.37, based on the earnings yield and a required return of 14.4%.</li><li>The valuation metrics suggest that the current share price implies 14.4% potential upside to the fair value.</li><li>The normalization of credit costs will boost the EPS growth for KBANK to an expected CAGR of 9.5% in 2024-2026E. Meanwhile, the tactical risk is neutral</li></ul>

We initiate our coverage on KBANK with an Outperform rating and a 12M FV of Bt142.37, based on the earnings yield and a required return of 14.4%.The valuation metrics suggest that the current share price implies 14.4% potential upside to the fair value.The normalization of credit costs will boost the EPS growth for KBANK to an expected CAGR of 9.5% in 2024-2026E. Meanwhile, the tactical risk is neutral

Kasikornbank - On the Way to Normalized Credit Costs

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

<ul><li>SGX welcomes 5 new Thai SDRs which allow investors to trade Thai blue-chip companies in the same way they would trade stocks listed in Singapore.</li><li>The 5 new SDRs are Advanced Info Service (SGX SDR stock code: TADD), Delta Electronics (TDED), Gulf Energy Development (TGED), Kasikornbank (TKKD) and Siam Cement Group (TSCD).</li><li>In total, the 8 Thai SDRs cover more than 40% of the SET50 benchmark and each of the 8 SDRs represent a different sector.</li></ul>

SGX welcomes 5 new Thai SDRs which allow investors to trade Thai blue-chip companies in the same way they would trade stocks listed in Singapore.The 5 new SDRs are Advanced Info Service (SGX SDR stock code: TADD), Delta Electronics (TDED), Gulf Energy Development (TGED), Kasikornbank (TKKD) and Siam Cement Group (TSCD).In total, the 8 Thai SDRs cover more than 40% of the SET50 benchmark and each of the 8 SDRs represent a different sector.

Expanded suite of 8 Thai SDRs tracking over 40% of Thailand’s SET50 Index

Thailand

Kasikornbank Public Company Limited provides commercial banking services including personal and commercial banking, international trade, as well as investment banking services, to its customers throughout Thailand.  The Bank has foreign branches in Los Angeles, Hong Kong, Cayman Islands, and Shenzhen; and representative offices in Shanghai, Beijing, and Kunmin.

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Kasikornbank PCL (KBANK TB)

Kasikornbank - In-Line 3Q24 Earnings; Balance Sheet Cleanup Expected to Be Completed in 2024E

We maintain a Neutral rating with a 12M FV of Bt150.00, based on the earnings yield method and a required return of 16.6%.

Krungthai XSpring

Kasikornbank - 2Q24 NP Beat Forecast by 5%; Stable Asset Quality

KBANK’s 2Q24 net profit beat our forecast by 5% at Bt12.6bn, up 15.1% YoY but down 6.1% QoQ, given higher-than-expected non- interest income.

Krungthai XSpring

Kasikornbank - 2Q24E Net Profit Growth YoY and QoQ

We maintain an Outperform rating, based on the earnings yield method, with a required rate of return of 14.4%. The valuation metrics indicate...

Krungthai XSpring

Kasikornbank - On the Way to Normalized Credit Costs

We initiate our coverage on KBANK with an Outperform rating and a 12M FV of Bt142.37, based on the earnings yield and a required return of 14.4%.

Krungthai XSpring

Expanded suite of 8 Thai SDRs tracking over 40% of Thailand’s SET50 Index

SGX welcomes 5 new Thai SDRs which allow investors to trade Thai blue-chip companies in the same way they would trade stocks listed in...

Singapore Exchange Ltd (SGX)

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