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 and our 12M FV of Bt2.00, based on the earnings yield method with a required return of 11.3%.</li><li>The valuation metrics indicate that the stock has 9.5% upside from its fair value.</li><li>The long-term growth is expected to be moderate, and the tactical risk remains neutral.</li></ul>

We maintain a Neutral rating and our 12M FV of Bt2.00, based on the earnings yield method with a required return of 11.3%.The valuation metrics indicate that the stock has 9.5% upside from its fair value.The long-term growth is expected to be moderate, and the tactical risk remains neutral.

Tmbthanachart Bank - In-Line 3Q24 Earnings Results

<ul><li>We initiate our coverage on TTB with a Neutral rating, and a 12- month fair value (12M FV) of Bt2.10, based on the earnings yield with a required return of 11%.</li><li>Our valuation metrics indicate that TTB’s medium-term profit growth is expected to achieve a CAGR of 7% during 2023-26E.</li><li>However, the stock implies upside of only 4% to the fair value, while the tactical risk is neutral.</li></ul>

We initiate our coverage on TTB with a Neutral rating, and a 12- month fair value (12M FV) of Bt2.10, based on the earnings yield with a required return of 11%.Our valuation metrics indicate that TTB’s medium-term profit growth is expected to achieve a CAGR of 7% during 2023-26E.However, the stock implies upside of only 4% to the fair value, while the tactical risk is neutral.

Tmbthanachart Bank Plc. - Buffer from Tax Credit to Help It Withstand Potential Headwinds

Thematic (Sector/Industry)

<ul><li>KTX holds a positive view of the new household debt relief measures, as they help reduce principal amounts and long-term debt burdens.</li><li>This is expected to have a favorable impact on asset quality and ease future provisioning pressures.</li><li>These measures are particularly beneficial for small and medium-sized banks with a high proportion of retail loan portfolios. Recommendations include KKP, TTB, and TISCO.</li></ul>

KTX holds a positive view of the new household debt relief measures, as they help reduce principal amounts and long-term debt burdens.This is expected to have a favorable impact on asset quality and ease future provisioning pressures.These measures are particularly beneficial for small and medium-sized banks with a high proportion of retail loan portfolios. Recommendations include KKP, TTB, and TISCO.

Banking - New Household Debt Relief Measure: A Positive Outlook for Small and Medium-Sized Banks

<ul><li>The six banks under our coverage reported a combined net profit of Bt43.6bn in 3Q24, growing 8.6% YoY and 3.0% QoQ, which was 6% above our expectations.</li><li>This was due to: I) BBL’s better-than-expected non-interest income (NII) from mark-to-market investment gains, and ii) lower-than-expected provisions from SCB and KKP.</li><li>We maintain a Neutral rating on the banking sector, as the short-term growth drivers remain unclear. </li></ul>

The six banks under our coverage reported a combined net profit of Bt43.6bn in 3Q24, growing 8.6% YoY and 3.0% QoQ, which was 6% above our expectations.This was due to: I) BBL’s better-than-expected non-interest income (NII) from mark-to-market investment gains, and ii) lower-than-expected provisions from SCB and KKP.We maintain a Neutral rating on the banking sector, as the short-term growth drivers remain unclear. 

Banking Upbeat 3Q24 Earnings but a Lack of Short-Term Catalysts - OCTOBER 28, 2024

Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

<ul>
<li>Krung Thai remains our sole best value pick among the Thai banks, having solid post-provision profitability, delivering double digit ROE, a sound balance sheet and attractive PBV and PE ratios</li>
<li>Krung Thai has the highest core capital ratios as well as delivering the best returns of the peer group, with reassuring metrics in terms of credit quality</li>
<li>Its share price is the best performer year-to-date, but we still see it to be attractively valued and the recent correction is a buying opportunity</li>
</ul>


Krung Thai remains our sole best value pick among the Thai banks, having solid post-provision profitability, delivering double digit ROE, a sound balance sheet and attractive PBV and PE ratios
Krung Thai has the highest core capital ratios as well as delivering the best returns of the peer group, with reassuring metrics in terms of credit quality
Its share price is the best performer year-to-date, but we still see it to be attractively valued and the recent correction is a buying opportunity


Thai Banks 3Q24 Screener; Krung Thai Offers the Best Value Relative to the Returns Outlook

Thailand

TMBThanachart Bank Public Company Limited provides a full range of banking and financial services. The Bank offers corporate and personal lending, retail and wholesale banking, international trade financing, and investment banking services to its customers throughout Thailand.  It also has branches in Hong Kong, Laos, and Cayman Island.

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TMBThanachart Bank (TTB TB)

Tmbthanachart Bank - In-Line 3Q24 Earnings Results

We maintain a Neutral rating and our 12M FV of Bt2.00, based on the earnings yield method with a required return of 11.3%.

Krungthai XSpring

Tmbthanachart Bank Plc. - Buffer from Tax Credit to Help It Withstand Potential Headwinds

We initiate our coverage on TTB with a Neutral rating, and a 12- month fair value (12M FV) of Bt2.10, based on the earnings yield with a required...

Krungthai XSpring

Banking - New Household Debt Relief Measure: A Positive Outlook for Small and Medium-Sized Banks

KTX holds a positive view of the new household debt relief measures, as they help reduce principal amounts and long-term debt burdens.

Krungthai XSpring

Banking Upbeat 3Q24 Earnings but a Lack of Short-Term Catalysts - OCTOBER 28, 2024

The six banks under our coverage reported a combined net profit of Bt43.6bn in 3Q24, growing 8.6% YoY and 3.0% QoQ, which was 6% above our...

Krungthai XSpring

Thai Banks 3Q24 Screener; Krung Thai Offers the Best Value Relative to the Returns Outlook

Krung Thai continues to stand out as our top pick among Thai banks, with its sound profitability, high ROE, solid balance sheet and attractive...

Victor Galliano

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Tmbthanachart Bank - In-Line 3Q24 Earnings Results

We maintain a Neutral rating and our 12M FV of Bt2.00, based on the earnings yield method with a required return of 11.3%.

Krungthai XSpring

Tmbthanachart Bank Plc. - Buffer from Tax Credit to Help It Withstand Potential Headwinds

We initiate our coverage on TTB with a Neutral rating, and a 12- month fair value (12M FV) of Bt2.10, based on the earnings yield with a required...

Krungthai XSpring

Banking - New Household Debt Relief Measure: A Positive Outlook for Small and Medium-Sized Banks

KTX holds a positive view of the new household debt relief measures, as they help reduce principal amounts and long-term debt burdens.

Krungthai XSpring

Banking Upbeat 3Q24 Earnings but a Lack of Short-Term Catalysts - OCTOBER 28, 2024

The six banks under our coverage reported a combined net profit of Bt43.6bn in 3Q24, growing 8.6% YoY and 3.0% QoQ, which was 6% above our...

Krungthai XSpring

Thai Banks 3Q24 Screener; Krung Thai Offers the Best Value Relative to the Returns Outlook

​Krung Thai continues to stand out as our top pick among Thai banks, with its sound profitability, high ROE, solid balance sheet and attractive...

Victor Galliano

Krung Thai continues to stand out as our top pick among Thai banks, with its sound profitability, high ROE, solid balance sheet and attractive...