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>We suggest selling JMART after we recommended buying it yesterday because the stock has fallen out of our top rankings (with the return at +0.51%).</li><li>However, long-term investors may continue holding it, with the loss-stopping point at Bt48.00.</li><li>We add KKP to the portfolio, as the stock is likely to offer a YoY increase in the dividend payment for its1H22performance, which will be made in September, after it reported 1H22 earnings of Bt4,089mn, +45.1% YoY.</li></ul>

We suggest selling JMART after we recommended buying it yesterday because the stock has fallen out of our top rankings (with the return at +0.51%).However, long-term investors may continue holding it, with the loss-stopping point at Bt48.00.We add KKP to the portfolio, as the stock is likely to offer a YoY increase in the dividend payment for its1H22performance, which will be made in September, after it reported 1H22 earnings of Bt4,089mn, +45.1% YoY.

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 KKP with a new target price of Bt84.00.Given a better-than-expected result in 2Q22 and new financial guidance, we increased our net profit projections by 7-8% in 2022-24.</li>
<li>Analyst meeting We are opportunistic after attending the analyst meeting on 25 July. Management adjusted its 2022 financial guidance as follows: (i) loan growth of 16% YoY (from 12%) </li>
<li>KKP raised its hire purchase interest rate by around 25bp to mitigate the impact higher funding costs that were likely increase going forward.It maintained a loan spread of 5.1%in 2022</li>
</ul>


Maintain BUY for KKP with a new target price of Bt84.00.Given a better-than-expected result in 2Q22 and new financial guidance, we increased our net profit projections by 7-8% in 2022-24.
Analyst meeting We are opportunistic after attending the analyst meeting on 25 July. Management adjusted its 2022 financial guidance as follows: (i) loan growth of 16% YoY (from 12%) 
KKP raised its hire purchase interest rate by around 25bp to mitigate the impact higher funding costs that were likely increase going forward.It maintained a loan spread of 5.1%in 2022


<ul>
<li>Maintain BUY for KKP with a target price of Bt82.00.KKP’s net profit came in at Bt2.0bn in 2Q22, up 50% YoY (-1% QoQ). At this valuation, KKP’s good 2Q22 results </li>
<li>2Q22 results KKP reported a net profit of Bt2.0bn in 2Q22, up 50% YoY (-1% QoQ), which was 8% higher than our estimates on lower provisions. The strong YoY  </li>
<li>Lending growth in 2Q22 was strong at 2.8% QoQ (1Q22: +6.5% QoQ),largely due to higher demand from retail loans.Asset quality remained resilient.The NPL ratio slightly increased to 3.2% in 2Q22.</li>
</ul>


Maintain BUY for KKP with a target price of Bt82.00.KKP’s net profit came in at Bt2.0bn in 2Q22, up 50% YoY (-1% QoQ). At this valuation, KKP’s good 2Q22 results 
2Q22 results KKP reported a net profit of Bt2.0bn in 2Q22, up 50% YoY (-1% QoQ), which was 8% higher than our estimates on lower provisions. The strong YoY  
Lending growth in 2Q22 was strong at 2.8% QoQ (1Q22: +6.5% QoQ),largely due to higher demand from retail loans.Asset quality remained resilient.The NPL ratio slightly increased to 3.2% in 2Q22.


<ul>
<li>Maintain BUY for KKP with a target price of Bt82.00. We like its steady net profit growth, resilient fundamentals, and high dividend yield, expected at 5.3-6.6% for 2022-24.</li>
<li>Strong 2Q22 net profit to rise YoY : We expect Kiatnakin Phatra (KKP) to post a net profit of Bt1.9b in 2Q22, up 39% YoY (-9% QoQ). </li>
<li>Lending growth in 2Q22 will likely continue to be strong at 4.2% QoQ (1Q22: +6.5% QoQ), largely due to higher demand from vehicle hire purchase and mortgage lending. </li>
</ul>


Maintain BUY for KKP with a target price of Bt82.00. We like its steady net profit growth, resilient fundamentals, and high dividend yield, expected at 5.3-6.6% for 2022-24.
Strong 2Q22 net profit to rise YoY : We expect Kiatnakin Phatra (KKP) to post a net profit of Bt1.9b in 2Q22, up 39% YoY (-9% QoQ). 
Lending growth in 2Q22 will likely continue to be strong at 4.2% QoQ (1Q22: +6.5% QoQ), largely due to higher demand from vehicle hire purchase and mortgage lending. 


Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/bangkok-life-assurance-pcl" target="_blank" data-smartkarma-citation="entities:16237:1" rel="noopener">Bangkok Life Assurance (BLA)</a>, <a href="https://www.smartkarma.com/entities/jmt-network-services-pcl" target="_blank" data-smartkarma-citation="entities:8581:1" rel="noopener">JMT Network Services (JMT)</a> and <a href="https://www.smartkarma.com/entities/jaymart-pcl" target="_blank" data-smartkarma-citation="entities:12053:1" rel="noopener">Jaymart (JMART)</a> will replace <a href="https://www.smartkarma.com/entities/com7-pcl" target="_blank" data-smartkarma-citation="entities:27411:1" rel="noopener">Com7 (COM7)</a>, <a href="https://www.smartkarma.com/entities/ratch-group-pcl" target="_blank" data-smartkarma-citation="entities:15338:1" rel="noopener">Ratch Group (RATCH)</a> and <a href="https://www.smartkarma.com/entities/sri-trang-gloves-thailand-public-company-limited" target="_blank" data-smartkarma-citation="entities:29141:1" rel="noopener">Sri Trang Gloves (STGT)</a> in the <a href="https://www.smartkarma.com/entities/stock-exchange-of-thailand-set-50-index" target="_blank" data-smartkarma-citation="entities:31493:1" rel="noopener">SET50 INDEX</a>.</li>
<li>Estimated one-way turnover is 2.1% and will result in a one-way trade of THB 1,914m. There is little funding flow on the other index stocks.</li>
<li>The inclusion of <a href="https://www.smartkarma.com/entities/bangkok-life-assurance-pcl" target="_blank" data-smartkarma-citation="entities:16237:1" rel="noopener">Bangkok Life Assurance (BLA TB)</a> is a minor surprise. The deletion of <a href="https://www.smartkarma.com/entities/com7-pcl" target="_blank" data-smartkarma-citation="entities:27411:1" rel="noopener">Com7 PCL (COM7 TB)</a> is a much bigger surprise.</li>
</ul>



Bangkok Life Assurance (BLA), JMT Network Services (JMT) and Jaymart (JMART) will replace Com7 (COM7), Ratch Group (RATCH) and Sri Trang Gloves (STGT) in the SET50 INDEX.
Estimated one-way turnover is 2.1% and will result in a one-way trade of THB 1,914m. There is little funding flow on the other index stocks.
The inclusion of Bangkok Life Assurance (BLA TB) is a minor surprise. The deletion of Com7 PCL (COM7 TB) is a much bigger surprise.


SET50 Index Rebalance: BLA, JMT, JMART Added; COM7, RATCH, STGT Out

Thailand

Kiatnakin Bank Public Company Limited provides commercial banking services including commercial, developmental, consumer, hire-purchase, and mortgage financing to its customers in Thailand. The Company also provides securities brokerage and investment advisory services.

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Kiatnakin Bank (KKP TB)

Big Cap Tactical Picks - August 9, 2022

We suggest selling JMART after we recommended buying it yesterday because the stock has fallen out of our top rankings (with the return at +0.51%).

Krungthai XSpring

KKP : Solid Growth, High Dividends

Maintain BUY for KKP with a new target price of Bt84.00. Given a better-than-expected result in 2Q22 and new financial guidance, we increased our...

Pi Securities PCL, Thailand

KKP : Attractive Valuation and Dividend

Maintain BUY for KKP with a target price of Bt82.00. KKP’s net profit came in at Bt2.0bn in 2Q22, up 50% YoY (-1% QoQ). At this valuation, KKP’s...

Pi Securities PCL, Thailand

KKP : A Growth and Dividend Play

Maintain BUY for KKP with a target price of Bt82.00. We like its steady net profit growth, resilient fundamentals, and high dividend yield,...

Pi Securities PCL, Thailand

SET50 Index Rebalance: BLA, JMT, JMART Added; COM7, RATCH, STGT Out

BLA, JMT & JMART replace COM7, RATCH & STGT in the SET50 Idx after the close on 30 June. The inclusion of BLA is a small surprise, while the...

Brian Freitas

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