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

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyzed the changes in short interest of Stock Exchange of Thailand as of Dec 20th.We estimate that they had an aggregated short interest worth USD2.0bn.</li>
<li>We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in PTT, CP AXTRA NON-VOTING DR, Bangchak, Kasikornbank, Gulf Energy Development.</li>
</ul>


We analyzed the changes in short interest of Stock Exchange of Thailand as of Dec 20th.We estimate that they had an aggregated short interest worth USD2.0bn.
We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in PTT, CP AXTRA NON-VOTING DR, Bangchak, Kasikornbank, Gulf Energy Development.


Thailand Short Interest Weekly (Dec 20th): PTT, CP AXTRA NON-VOTING DR, Bangchak, Kasikornbank

<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

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

Thailand Short Interest Weekly (Dec 20th): PTT, CP AXTRA NON-VOTING DR, Bangchak, Kasikornbank

We analyzed SET short interest report for the past week and highlighted short interest changes in PTT, CP AXTRA NON-VOTING DR, Bangchak,...

Ke Yan, CFA, FRM

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

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