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.

Thematic (Sector/Industry)

<ul><li>Asian bourses rebounded on the decrease in US bond yields, but the SET only climbed up limitedly before dropping sharply in the afternoon and briefly sank below 1,350 points as selling pressure targeted large cap stocks, such as energy, petrol and ICT shares.</li><li>However, the index was able to recover quickly to stay above 1,360 points, even though foreign investors kept selling.</li><li>The index initially saw a slight increase but then experienced a rapid and significant decline, indicating strong selling pressure.</li></ul>

Asian bourses rebounded on the decrease in US bond yields, but the SET only climbed up limitedly before dropping sharply in the afternoon and briefly sank below 1,350 points as selling pressure targeted large cap stocks, such as energy, petrol and ICT shares.However, the index was able to recover quickly to stay above 1,360 points, even though foreign investors kept selling.The index initially saw a slight increase but then experienced a rapid and significant decline, indicating strong selling pressure.

Cross Asset Strategy

<ul><li>Although many Asian bourses bounced up, the SET sank sharply amid concerns that the Fed would maintain interest rates at a high level, alongside the surge of US bond yields, the posting of XD and escalating tensions in the Middle East.</li><li>As a result, a selling force quickly targeted large cap stocks, and foreign investors kept selling heavily, causing the index to get closer to the previous low at 1,350  points.</li><li>The index reverted to its previous sideways movement, opening a gap down and forming two consecutive black candlesticks.</li></ul>

Although many Asian bourses bounced up, the SET sank sharply amid concerns that the Fed would maintain interest rates at a high level, alongside the surge of US bond yields, the posting of XD and escalating tensions in the Middle East.As a result, a selling force quickly targeted large cap stocks, and foreign investors kept selling heavily, causing the index to get closer to the previous low at 1,350  points.The index reverted to its previous sideways movement, opening a gap down and forming two consecutive black candlesticks.

<ul><li>The SET fell in line with Asian bourses as a selling force continued to target large cap shares, causing the index to hit a 39-month low.</li><li>However, it subsequently improved slightly after the market shifted its focus to small to medium cap stocks, alongside expectations for an interest rate cut by the MPC due to the continued contraction of Thai inflation.</li><li>Despite the index experiencing a further decline, a doji signal emerged at the support area, mitigating the negative signal from the preceding black candlestick.</li></ul>

The SET fell in line with Asian bourses as a selling force continued to target large cap shares, causing the index to hit a 39-month low.However, it subsequently improved slightly after the market shifted its focus to small to medium cap stocks, alongside expectations for an interest rate cut by the MPC due to the continued contraction of Thai inflation.Despite the index experiencing a further decline, a doji signal emerged at the support area, mitigating the negative signal from the preceding black candlestick.

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

<ul>
<li>Maintain BUY with a target price of Bt20.20. We maintain our views on KTB’s business outlook after attending the analyst meeting, despite a potential reduction in credit costs ahead.</li>
<li>Analyst meeting Despite a 0.5% decline in 9M22, KTB maintained its loan growth targets of 4-5% with its concentration in retail and commercial loans. While NIM was likely higher </li>
<li>Despite its resilient balance sheet,KTB preferred to keep its coverage ratio to be higher than the guidance of 160%given its lingering concerns about the global economic slowdown and high inflation </li>
</ul>


Maintain BUY with a target price of Bt20.20. We maintain our views on KTB’s business outlook after attending the analyst meeting, despite a potential reduction in credit costs ahead.
Analyst meeting Despite a 0.5% decline in 9M22, KTB maintained its loan growth targets of 4-5% with its concentration in retail and commercial loans. While NIM was likely higher 
Despite its resilient balance sheet,KTB preferred to keep its coverage ratio to be higher than the guidance of 160%given its lingering concerns about the global economic slowdown and high inflation 


<ul>
<li>Upgrade to BUY (from HOLD) with a higher target price of Bt20.20. Our BUY call reflects its resilient balance sheet, higher ROE prospects and more attractive upside gain</li>
<li>Good 3Q22 results Net profit came in at Bt8.4bn in 3Q22, up 67% YoY (+1% QoQ), which was 10% higher than expected due to higher net interest income.</li>
<li>NIM continued to expand both YoY and QoQ at 2.7% due to higher earnings assets. The cost-to-income ratio increased QoQ to 45.3% (2Q22: 42.5%) given higher operating expenses.</li>
</ul>


Upgrade to BUY (from HOLD) with a higher target price of Bt20.20. Our BUY call reflects its resilient balance sheet, higher ROE prospects and more attractive upside gain
Good 3Q22 results Net profit came in at Bt8.4bn in 3Q22, up 67% YoY (+1% QoQ), which was 10% higher than expected due to higher net interest income.
NIM continued to expand both YoY and QoQ at 2.7% due to higher earnings assets. The cost-to-income ratio increased QoQ to 45.3% (2Q22: 42.5%) given higher operating expenses.


Thailand

Krung Thai Bank Public Company Limited is a state-owned commercial bank offering various banking and financial services including commercial, consumer, credit card, and mortgage loans, as well as provident fund management, foreign exchange, and international trade financing services.  The Bank is majority owned by the Financial Institutions Development Fund.

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Krung Thai Bank Pub (KTB TB)

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