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>KTX maintains a Neutral recommendation, with the valuation metrics suggesting a sell based on the current fundamentals, as the stock price exceeds its fair value.</li><li>In addition, the long-term growth outlook is deemed unattractive, while the tactical view remains neutral.</li><li>The fair value is assessed at Bt8.08 using the earnings yield method with a required return of 6.41%.</li></ul>

KTX maintains a Neutral recommendation, with the valuation metrics suggesting a sell based on the current fundamentals, as the stock price exceeds its fair value.In addition, the long-term growth outlook is deemed unattractive, while the tactical view remains neutral.The fair value is assessed at Bt8.08 using the earnings yield method with a required return of 6.41%.

HOME PRODUCT CENTER - 3Q24 Earnings Down YoY and QoQ, as Expected

<ul><li>We expect the 3Q24E profit to decline YoY and QoQ due to weak same-store-sales growth (SSSG), which, although showing signs of improvement, is projected to decline for the full year.</li><li>This led us to revise down our earnings estimates for 2024-26E by an average of 11% per year.</li><li>The valuation metrics suggest a sell recommendation based on the current fundamentals, as the stock price exceeds its fair value.</li></ul>

We expect the 3Q24E profit to decline YoY and QoQ due to weak same-store-sales growth (SSSG), which, although showing signs of improvement, is projected to decline for the full year.This led us to revise down our earnings estimates for 2024-26E by an average of 11% per year.The valuation metrics suggest a sell recommendation based on the current fundamentals, as the stock price exceeds its fair value.

Home Product Center - 3Q24E Earnings Expected to Fall YoY and QoQ

<ul><li>KTX maintains a Neutral rating. The valuation metrics suggest that the latest share price is attractive in terms of the current fundamentals, as the share price has continuously declined, reflecting negative SSSG for four consecutive quarters.</li><li>We have a neutral view on the long- term growth outlook.</li><li>In addition, the share price implies limited tactical upside risk, with the 12M FV at Bt10.90, based on the earnings yield method and a required rate of return of 5.2%.</li></ul>

KTX maintains a Neutral rating. The valuation metrics suggest that the latest share price is attractive in terms of the current fundamentals, as the share price has continuously declined, reflecting negative SSSG for four consecutive quarters.We have a neutral view on the long- term growth outlook.In addition, the share price implies limited tactical upside risk, with the 12M FV at Bt10.90, based on the earnings yield method and a required rate of return of 5.2%.

Home Product Center - Flat 2Q24 Earnings YoY but Down 5% QoQ, as Expected

<ul><li>KTX holds a neutral to negative view on HMPRO’s 2Q24E earnings, which are expected to remain stable YoY but decline QoQ due to negative same-store-sales growth (SSSG).</li><li>Despite this, the current share price appears attractive from a fundamental perspective, as it has continued to fall, reflecting negative SSSG for four consecutive quarters.</li><li>The long-term earnings outlook is neutral, as is the tactical view. </li></ul>

KTX holds a neutral to negative view on HMPRO’s 2Q24E earnings, which are expected to remain stable YoY but decline QoQ due to negative same-store-sales growth (SSSG).Despite this, the current share price appears attractive from a fundamental perspective, as it has continued to fall, reflecting negative SSSG for four consecutive quarters.The long-term earnings outlook is neutral, as is the tactical view. 

Home Product Center - 2Q24E Earnings to Have Increased 1% YoY but Fallen 5% QoQ

<ul><li>In 1Q24, earnings surpassed expectations by 3%, driven by higher-than-anticipated other income and lower-than- expected operating expenses.</li><li>Furthermore, the strategic push to boost sales from the previous year continued to yield results in 1Q24.</li><li>Despite challenges stemming from weakened purchasing power amid adverse economic conditions, management demonstrated efficiency, leading us to maintain our earnings projection.</li></ul>

In 1Q24, earnings surpassed expectations by 3%, driven by higher-than-anticipated other income and lower-than- expected operating expenses.Furthermore, the strategic push to boost sales from the previous year continued to yield results in 1Q24.Despite challenges stemming from weakened purchasing power amid adverse economic conditions, management demonstrated efficiency, leading us to maintain our earnings projection.

Home Product Center -1Q24 Earnings Increased 6% YoY and 12% QoQ, in Line with Projection

Thailand

Home Product Center Public Company Limited is a retailer of building materials and home improvement products.

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Home Product Center (HMPRO TB)

HOME PRODUCT CENTER - 3Q24 Earnings Down YoY and QoQ, as Expected

KTX maintains a Neutral recommendation, with the valuation metrics suggesting a sell based on the current fundamentals, as the stock price exceeds...

Krungthai XSpring

Home Product Center - 3Q24E Earnings Expected to Fall YoY and QoQ

We expect the 3Q24E profit to decline YoY and QoQ due to weak same-store-sales growth (SSSG), which, although showing signs of improvement, is...

Krungthai XSpring

Home Product Center - Flat 2Q24 Earnings YoY but Down 5% QoQ, as Expected

The valuation metrics suggest that the latest share price is attractive in terms of the current fundamentals, as the share price has continuously...

Krungthai XSpring

Home Product Center - 2Q24E Earnings to Have Increased 1% YoY but Fallen 5% QoQ

KTX holds a neutral to negative view on HMPRO’s 2Q24E earnings, which are expected to remain stable YoY but decline QoQ due to negative same-store...

Krungthai XSpring

Home Product Center -1Q24 Earnings Increased 6% YoY and 12% QoQ, in Line with Projection

In 1Q24, earnings surpassed expectations by 3%, driven by higher-than-anticipated other income and lower-than- expected operating expenses.

Krungthai XSpring

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