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)

<div><div><div><div><ul><li>Yesterday, our Big Cap portfolio generated a return of +0.33% vs. the SET Index’s return of +0.35%.</li><li>The share prices of stocks under the reopening theme showed healthy increases, namely BDMS (+2.78%), MAJOR (+1.47%) and CENTEL (+1.2%).</li><li><div><div><p>GULF is a holding company engaging in core businesses relating to the generation and distribution of power based on natural gas and alternative energy. </p></div></div></li></ul></div></div></div></div>

Yesterday, our Big Cap portfolio generated a return of +0.33% vs. the SET Index’s return of +0.35%.The share prices of stocks under the reopening theme showed healthy increases, namely BDMS (+2.78%), MAJOR (+1.47%) and CENTEL (+1.2%).GULF is a holding company engaging in core businesses relating to the generation and distribution of power based on natural gas and alternative energy. 

<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>Maintain BUY recommendation for MINT while roll over target price to Bt41.0 (Previous TP:Bt38.0)We expect the company to post core profit for the first time since pandemic began at Bt1.0bn</li>
<li>Impressive recovery in hospitality business.We expect hotel revenue to hit 12 quarter high at Bt23bn,thanks to NH Hotel Group (NHH) where its occupancy rate is expected to surge to 70%</li>
<li>Food revenue is expected to be at Bt5.7bn (+16%YoY-6%QoQ) as we anticipate continuing solid SSSG at 7.3% compared with 4.2% and 6.1% in 2Q21 and 1Q22 respectively. </li>
</ul>


Maintain BUY recommendation for MINT while roll over target price to Bt41.0 (Previous TP:Bt38.0)We expect the company to post core profit for the first time since pandemic began at Bt1.0bn
Impressive recovery in hospitality business.We expect hotel revenue to hit 12 quarter high at Bt23bn,thanks to NH Hotel Group (NHH) where its occupancy rate is expected to surge to 70%
Food revenue is expected to be at Bt5.7bn (+16%YoY-6%QoQ) as we anticipate continuing solid SSSG at 7.3% compared with 4.2% and 6.1% in 2Q21 and 1Q22 respectively. 


MINT : Expect to Post Profit for the First Time Since Pandemic Began

<ul>
<li>Analyst meeting came out with a positive tone regarding 2022 outlook.We maintain BUY rating with a target price of Bt38.0,based DCF method (WACC of 8% and terminal growth of 2%)</li>
<li>Positive 2022outlook as we expect the hotel industry to make a strong come back in 2022due to vaccine roll outs and easing of international travel restrictions,making the earnings positive for2022</li>
<li>Since 1Q is typically the lowest travel seasonality,we expect the revenue from hotels to grow for next 3 quarters (around 50% by 4Q22), contributing around 75% of the total revenue.</li>
</ul>


Analyst meeting came out with a positive tone regarding 2022 outlook.We maintain BUY rating with a target price of Bt38.0,based DCF method (WACC of 8% and terminal growth of 2%)
Positive 2022outlook as we expect the hotel industry to make a strong come back in 2022due to vaccine roll outs and easing of international travel restrictions,making the earnings positive for2022
Since 1Q is typically the lowest travel seasonality,we expect the revenue from hotels to grow for next 3 quarters (around 50% by 4Q22), contributing around 75% of the total revenue.


MINT: Hotel Segment’s Recovery Will Boost 2022 Growth

Thailand

Central Plaza Hotel Public Company Limited owns and manages hotels and quick service restaurants. The Company operates its hotels under the banner of Centara Hotels & Resorts and franchises western and Japanese quick service restaurants.

MK Restaurants Group PCL operates restaurants. The Company supplies traditional Thai food.

The Erawan Group Public Company Limited develops and operates luxurious hotels, office buildings and shopping centers in the heart of Bangkok.

Dusit Thani Public Company Limited owns and operates the Dusit and the Royal Princess chain of hotels and resorts.  Its hotels are located in Bangkok and provinces famous for tourist attractions.  Dusit Thani also operates hotels in Indonesia, Manila, and Dubai.  Additionally, the Company develops condominiums for sale and rental.

Laguna Resorts & Hotels Public Company Limited conducts hotel and resort business.  The Company operates Banyan Tree Phuket Hotel, Dusit Laguna Resort Hotel, Allmanda Laguna Phuket Hotel, Laguna Beach Resort Hotel, Sheraton Grande Laguna Beach Hotel, all of which are located on Phuket Island.  Additionally, the Company operates golf courses and property development business.

S&P Syndicate Public Company Limited and its subsidiaries owns and operates S&P restaurant chain.  The Company also produces bakery snack, and canned food products under its S&P brand name.

Shangri-La Hotel Public Company Limited operates the Shangri-La Hotel in Bangkok providing lodging services, food and beverages services, and arrangement of conferences and parties. Through subsidiaries, the Company invests in hotel and in property development business.

After You PCL operates a chain of cafeterias. The Company provides beverages, pastries, cakes, buns, and other bakery products. After You serves customers in Thailand.

Royal Orchid Hotel (Thailand) Public Company Limited owns and operates the Royal Orchid Sheraton Hotel and Towers.  Located in Bangkok's business district, the Hotel offers more than 700 rooms and suites, as well as banquet, convention and exhibition facilities, night clubs, shopping complex, and restaurants.

City Sports and Recreation Public Company Limited operates a golf course and associated club house on 160 acres of land Northeast of Bangkok. The Company also operates a restaurant.

MGM China Holdings Ltd. owns a luxury resort, hotel, and casino located in Macau. The Company is also exploring other casino gaming development opportunities in Macau.

Wynn Macau, Limited owns and operates Wynn Macau, a destination casino resort currently featuring hotel rooms and suites, a casino, casual and fine dining restaurants, retail space and leisure amenities.

Skylark Co. Ltd. mainly operates a family restaurant chain across Japan.  The Company offers Japanese-style, Western-style, and Asia-style foods for a wide variety of targeted customer segments.  Skylark also sells food and provides delivery servies.

McDonald's Holdings Company (Japan), Ltd. operates a hamburger fast food restaurant chain throughout Japan.  The Company operates its own stores and franchise stores.

Jubilant Foodworks Ltd. owns and operates fast food chains. The Company offers donuts, baked goods, coffee, bagels, muffin, fruit milkshakes, smoothies, tea, sandwiches, pizza, and beverages. Jubilant Foodworks serves its products to customers throughout India.

Jollibee Foods Corporation owns, franchises and manages a network of fast food restaurants under the trade name Jollibee. The Company was incorporated in 1978.

The Wendy's Company operates fast-food restaurants. The Company owns, operates, and franchises fast-food restaurants located throughout countries that include the United States, Singapore, the Middle East and North Africa, the Russian Federation, the Eastern Caribbean, Argentina, the Philippines and Japan.

Marriott Vacations Worldwide Corporation is a worldwide developer, marketer, seller and manager of vacation ownership resorts and vacation club, destination club and exchange programs, principally under the "Marriott" and "Ritz-Carlton" brands and trademarks, which we license from Marriott International and Ritz-Carlton.

Travel + Leisure Co. operates as a hospitality company. The Company focuses on providing vacation ownership, managed rental, and exchange services, as well as owns vacation resorts and exchange properties. Travel + Leisure serves customers worldwide.

Genting Malaysia Berhad operates a tourist resort in Genting Highlands which includes hotels, restaurants, casinos, and recreational and amusement facilities. Through its subsidiaries, the Company also develops and leases property, operates leisure and hospitality services, and provides time share ownership scheme.

Minor International PCL is a global company focused on three primary businesses including restaurants, hotels and lifestyle brands distribution.

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Minor International (MINT TB)

Big Cap Tactical Picks - August 4, 2022

Yesterday, our Big Cap portfolio generated a return of +0.33% vs. the SET Index’s return of +0.35%. The share prices of stocks under the reopening...

Krungthai XSpring

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

MINT : Expect to Post Profit for the First Time Since Pandemic Began

Maintain BUY recommendation for MINT while roll over target price to Bt41.0 (Previous TP: Bt38.0) We expect the company to post core profit for the...

Pi Securities PCL, Thailand

MINT: Hotel Segment’s Recovery Will Boost 2022 Growth

Analyst meeting came out with a positive tone regarding 2022 outlook. We maintain BUY rating with a target price of Bt38.0, based DCF method (WACC...

Pi Securities PCL, Thailand

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