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>Greater clarity after the general election should ease worries over a possible coup and a delay in the formation of a coalition government, which we expect to consist of three parties, i.e., the Pheu Thai Party, the Palang Pracharath Party and the Bhumjaithai Party, in our base-case scenario; this would reduce the risk premium of the SET Index, pushing it up to our target of 1,607 points.</li><li>Historical data from the five most recent elections shows that the SET increased by an average of +3.47% in the month after they were held; and in the week before and after the general elections took place, the index rose by 1.87% and 3.81%, respectively.</li><li>The biggest gainers were the finance, property development and ICT sectors. We thus recommend speculating on SIRI, SC, SCB, KBANK, CPALL, INTUCH, ADVANC and MINT.</li></ul>

Greater clarity after the general election should ease worries over a possible coup and a delay in the formation of a coalition government, which we expect to consist of three parties, i.e., the Pheu Thai Party, the Palang Pracharath Party and the Bhumjaithai Party, in our base-case scenario; this would reduce the risk premium of the SET Index, pushing it up to our target of 1,607 points.Historical data from the five most recent elections shows that the SET increased by an average of +3.47% in the month after they were held; and in the week before and after the general elections took place, the index rose by 1.87% and 3.81%, respectively.The biggest gainers were the finance, property development and ICT sectors. We thus recommend speculating on SIRI, SC, SCB, KBANK, CPALL, INTUCH, ADVANC and MINT.

Special Report: Election Rally (History to Repeat Itself)

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 for KBANK with a new target price of Bt180.00. Given the macro challenges ahead, the bank prudently set aside provisions and concentrated on balance sheet clean-up.</li>
<li>Loan growth in 2022 will be lower than the guidance of 6% due to its planning to NPL outflow management to clean up the balance sheet. </li>
<li>Lending strategy was to focus on the small-sized ticket via digital lending as this would improve margin and future profitability going forward despite higher credit costs,</li>
</ul>


Maintain BUY for KBANK with a new target price of Bt180.00. Given the macro challenges ahead, the bank prudently set aside provisions and concentrated on balance sheet clean-up.
Loan growth in 2022 will be lower than the guidance of 6% due to its planning to NPL outflow management to clean up the balance sheet. 
Lending strategy was to focus on the small-sized ticket via digital lending as this would improve margin and future profitability going forward despite higher credit costs,


<ul>
<li>Maintain BUY for KBANK with a target price of Bt174.00. KBANK’s 2Q22 net profit came in at Bt10.8bn (+21% YoY, -4% QoQ). Going forward, the bank will focus on cleaning </li>
<li>Analyst meeting We are neutral after attending the analyst meeting on 21 July.  KBANK affirmed that it had adequate reserves to support future growth and withstand uncertainty.</li>
<li>There is potential for credit cost reduction in 2023 if Thai economic growth continues to improve going forward.</li>
</ul>


Maintain BUY for KBANK with a target price of Bt174.00. KBANK’s 2Q22 net profit came in at Bt10.8bn (+21% YoY, -4% QoQ). Going forward, the bank will focus on cleaning 
Analyst meeting We are neutral after attending the analyst meeting on 21 July.  KBANK affirmed that it had adequate reserves to support future growth and withstand uncertainty.
There is potential for credit cost reduction in 2023 if Thai economic growth continues to improve going forward.


<ul>
<li>Maintain BUY for KBANK with a target price of Bt174.00. We are optimistic about the joint venture between KBANK and JMT. Going forward, we expect KBANK’s profitability to increase </li>
<li>A joint venture between KBANK and JMT:  KBANK joined with JMT Network (JMT) in establishing JK Asset Management Co., Ltd. (JK AMC). The establishment of JK AMC will allow KBANK </li>
<li>KBANK plans to sell NPLs of Bt50bn to JK AMC within 2022, which will alleviate KBANK’s future NPLs, improve net interest margin (NIM), and reduce potential provisions </li>
</ul>


Maintain BUY for KBANK with a target price of Bt174.00. We are optimistic about the joint venture between KBANK and JMT. Going forward, we expect KBANK’s profitability to increase 
A joint venture between KBANK and JMT:  KBANK joined with JMT Network (JMT) in establishing JK Asset Management Co., Ltd. (JK AMC). The establishment of JK AMC will allow KBANK 
KBANK plans to sell NPLs of Bt50bn to JK AMC within 2022, which will alleviate KBANK’s future NPLs, improve net interest margin (NIM), and reduce potential provisions 


<ul>
<li>Reiterate our BUY rating with a target price of Bt174. Our BUY call reflects (1) steady growth ahead from improving economic recovery; (2) adequate reserves against new NPLs</li>
<li>Management maintained 2022 financial guidance despite a GDP downgrade. It would likely concentrate on implementing comprehensive debt restructuring to improve the balance sheet.</li>
<li>Net profit in 1Q22 came in line with our expectations at Bt11.2bn (+5% YoY, +13% QoQ).</li>
</ul>


Reiterate our BUY rating with a target price of Bt174. Our BUY call reflects (1) steady growth ahead from improving economic recovery; (2) adequate reserves against new NPLs
Management maintained 2022 financial guidance despite a GDP downgrade. It would likely concentrate on implementing comprehensive debt restructuring to improve the balance sheet.
Net profit in 1Q22 came in line with our expectations at Bt11.2bn (+5% YoY, +13% QoQ).


KBANK: Concentration on Debt Restructuring Ahead

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 (KBANK/F TB)

Special Report: Election Rally (History to Repeat Itself)

The biggest gainers were the finance, property development and ICT sectors. We thus recommend speculating on SIRI, SC, SCB, KBANK, CPALL, INTUCH,...

Krungthai XSpring

KBANK : Guarding Against Uncertainty

Maintain BUY for KBANK with a new target price of Bt180.00. Given the macro challenges ahead, the bank prudently set aside provisions and...

Pi Securities PCL, Thailand

KBANK : Asset Quality Remains a Priority

Maintain BUY for KBANK with a target price of Bt174.00. KBANK’s 2Q22 net profit came in at Bt10.8bn (+21% YoY, -4% QoQ). Going forward, the bank...

Pi Securities PCL, Thailand

KBANK : Return to Normal Operations

Maintain BUY for KBANK with a target price of Bt174.00. We are optimistic about the joint venture between KBANK and JMT. Going forward, we expect...

Pi Securities PCL, Thailand

KBANK: Concentration on Debt Restructuring Ahead

Reiterate our BUY rating with a target price of Bt174. Our BUY call reflects (1) steady growth ahead from improving economic recovery; (2) adequate...

Pi Securities PCL, Thailand

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