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 recommend buying MEGA and MAJOR.</li><li>MEGA’s share price has rebounded by more than 5% over the past two weeks on the market’s expectations for a limited impact from Myanmar’s government ordering the suspension of loan repayments in foreign currencies.</li><li>The firm’s 2022E earnings are forecast to grow 8.68% YoY to Bt2,116mn, driven by the depreciation of the baht, the development of new projects and expansion to new markets with low competition.</li></ul>

We recommend buying MEGA and MAJOR.MEGA’s share price has rebounded by more than 5% over the past two weeks on the market’s expectations for a limited impact from Myanmar’s government ordering the suspension of loan repayments in foreign currencies.The firm’s 2022E earnings are forecast to grow 8.68% YoY to Bt2,116mn, driven by the depreciation of the baht, the development of new projects and expansion to new markets with low competition.

Cross Asset Strategy

<ul><li>We recommend selling KKP (with the return since it was added to the portfolio at 0.7%) after we added it for just one day, as the stock has fallen out of our top rankings.</li><li>However, long-term investors may consider holding it and stopping losses at Bt64.25.</li><li>We have added EA, as the stock is expected to benefit from the potential growth in the EV industry after it acquired a 23.63% share in BYD, which provides electric bus services.</li></ul>

We recommend selling KKP (with the return since it was added to the portfolio at 0.7%) after we added it for just one day, as the stock has fallen out of our top rankings.However, long-term investors may consider holding it and stopping losses at Bt64.25.We have added EA, as the stock is expected to benefit from the potential growth in the EV industry after it acquired a 23.63% share in BYD, which provides electric bus services.

Big Cap Tactical Picks - Highlights of the Day

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>Downgrade to HOLD (from BUY) with a target price of Bt16.70. Our downgrade reflects limited upside gain as a rise in share price is largely priced strong 1Q22 performance </li>
<li>Quarterly earnings passed the peak level in 1Q22:Like other banks, KTB’s fundamentals have improved from the economic reopening and its resilient asset quality.</li>
<li>Positive sentiments from digital lottery ticket sales The Government Lottery Office (GLO) mentioned that more than 5m lottery tickets were sold through KTB’s Paotang G-wallet app.</li>
</ul>


Downgrade to HOLD (from BUY) with a target price of Bt16.70. Our downgrade reflects limited upside gain as a rise in share price is largely priced strong 1Q22 performance 
Quarterly earnings passed the peak level in 1Q22:Like other banks, KTB’s fundamentals have improved from the economic reopening and its resilient asset quality.
Positive sentiments from digital lottery ticket sales The Government Lottery Office (GLO) mentioned that more than 5m lottery tickets were sold through KTB’s Paotang G-wallet app.


<ul>
<li>Maintain BUY with a higher target price of Bt16.70. Our BUY call reflects steady net profit growth,resilient asset quality, and attractive valuation.Our valuation is derived from the Gordon growth model </li>
<li>Management maintained its key 2022 financial guidance. It affirmed that the KTB’s coverage ratio was high enough to withstand uncertainties and there was room to reduce provisions ahead.</li>
<li>We increased our net profit forecast by 5-9%for 2022-24 to reflect our lower provision estimates.We expect KTB’s net profit growth to be solid at 19%YoY in 2022 and continue rising</li>
</ul>


Maintain BUY with a higher target price of Bt16.70. Our BUY call reflects steady net profit growth,resilient asset quality, and attractive valuation.Our valuation is derived from the Gordon growth model 
Management maintained its key 2022 financial guidance. It affirmed that the KTB’s coverage ratio was high enough to withstand uncertainties and there was room to reduce provisions ahead.
We increased our net profit forecast by 5-9%for 2022-24 to reflect our lower provision estimates.We expect KTB’s net profit growth to be solid at 19%YoY in 2022 and continue rising


KTB: Steady Growth with Resilient Asset Quality

<ul>
<li>Upgrade BUY with a target price of Bt15.00. Our upgrade reflects an attractive upside gain,resilient asset quality,and potential credit costs reduction. Our valuation is derived from the Gordon growth model</li>
<li>Net profit in 1Q22 came in at Bt8.8bn (+57% YoY, +78% QoQ) and 37% higher than our expectation on lower-than-expected provisions.</li>
<li>Asset quality improved. The NPL ratio decreased to 3.3% in 1Q22 and the loan loss coverage ratio was higher to 173.6% to withstand uncertainty ahead.</li>
</ul>


Upgrade BUY with a target price of Bt15.00. Our upgrade reflects an attractive upside gain,resilient asset quality,and potential credit costs reduction. Our valuation is derived from the Gordon growth model
Net profit in 1Q22 came in at Bt8.8bn (+57% YoY, +78% QoQ) and 37% higher than our expectation on lower-than-expected provisions.
Asset quality improved. The NPL ratio decreased to 3.3% in 1Q22 and the loan loss coverage ratio was higher to 173.6% to withstand uncertainty ahead.


KTB: Attractive Valuation and Potential Credit Cost Reduction

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)

Big Cap Tactical Picks - Aug 3, 2022

MEGA’s share price has rebounded by more than 5% over the past two weeks on the market’s expectations for a limited impact from Myanmar’s government

Krungthai XSpring

Big Cap Tactical Picks - Highlights of the Day

We recommend selling KKP (with the return since it was added to the portfolio at 0.7%) after we added it for just one day, as the stock has fallen...

Krungthai XSpring

KTB: Limited Upside Gain Potential

Downgrade to HOLD (from BUY) with a target price of Bt16.70. Our downgrade reflects limited upside gain as a rise in share price is largely priced...

Pi Securities PCL, Thailand

KTB: Steady Growth with Resilient Asset Quality

Maintain BUY with a higher target price of Bt16.70.Our BUY call reflects steady net profit growth,resilient asset quality,and attractive...

Pi Securities PCL, Thailand

KTB: Attractive Valuation and Potential Credit Cost Reduction

Upgrade BUY with a target price of Bt15.00.Our upgrade reflects an attractive upside gain, resilient asset quality,and potential credit costs...

Pi Securities PCL, Thailand

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