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>We downgrade PSL to a Neutral rating with a new 2025E fair price of Bt9.04 (from an Outperform rating and the fair price of Bt11.40 previously).</li><li>The stock price currently provides upside of 10% to our 2025E FV of Bt9.04, based on a required rate of return of 8.74%, reflecting the target PER of 11.4x.</li><li>Its growth trajectory is categorized as poor, with a decelerating 5% CAGR in 2024-26E.</li></ul>

We downgrade PSL to a Neutral rating with a new 2025E fair price of Bt9.04 (from an Outperform rating and the fair price of Bt11.40 previously).The stock price currently provides upside of 10% to our 2025E FV of Bt9.04, based on a required rate of return of 8.74%, reflecting the target PER of 11.4x.Its growth trajectory is categorized as poor, with a decelerating 5% CAGR in 2024-26E.

Precious Shipping - Quarterly Momentum Was Eroded by Freight Rate’s Decline

<ul><li>KTX maintains an Outperform rating and the 12M FV of Bt11.40, based on a required return of 8.52%.</li><li>Our valuation metrics suggest that the current valuation is attractive, alongside steady long-term growth prospects; meanwhile, the tactical parameters are at a neutral level.</li><li>We have a positive view on the dry-bulk shipping business in the minor bulk segment given the well-balanced demand and supply outlook, which should support operators’ earnings at a profitable level.</li></ul>

KTX maintains an Outperform rating and the 12M FV of Bt11.40, based on a required return of 8.52%.Our valuation metrics suggest that the current valuation is attractive, alongside steady long-term growth prospects; meanwhile, the tactical parameters are at a neutral level.We have a positive view on the dry-bulk shipping business in the minor bulk segment given the well-balanced demand and supply outlook, which should support operators’ earnings at a profitable level.

Precious Shipping - 2Q24 Core Profit Gained 85% YoY and 29% QoQ

<ul><li>We reinitiate our coverage on PSL with an Outperform rating and a 12M FV of Bt11.40, based on a required return of 8.52%.</li><li>Our valuation metrics suggest that the current valuation is attractive, alongside steady long-term growth prospects; meanwhile, the tactical parameters are at a neutral level.</li><li>PSL is trading at a 2024E PER of 10.6x, which is a premium relative to its Thai and global peers of 9.1x and 8.8x, respectively. </li></ul>

We reinitiate our coverage on PSL with an Outperform rating and a 12M FV of Bt11.40, based on a required return of 8.52%.Our valuation metrics suggest that the current valuation is attractive, alongside steady long-term growth prospects; meanwhile, the tactical parameters are at a neutral level.PSL is trading at a 2024E PER of 10.6x, which is a premium relative to its Thai and global peers of 9.1x and 8.8x, respectively. 

Precious Shipping - Seasonal High in 3Q and Healthy Long-Term Cycle

<div><div><div><ul><li>PSL’s performance varies in line with global freight rates, which are expected to rebound in the short term after the sharp plunge in 4Q22 on the anticipation of a demand surge from China’s reopening and after the Chinese New Year.</li><li>Nonetheless, earnings are expected to decline in 2023-24E, as we believe the shipping industry just passed the upcycle.</li><li>Maintain a Neutral rating on PSL, with a fair price of Bt15.50</li></ul></div></div></div>

PSL’s performance varies in line with global freight rates, which are expected to rebound in the short term after the sharp plunge in 4Q22 on the anticipation of a demand surge from China’s reopening and after the Chinese New Year.Nonetheless, earnings are expected to decline in 2023-24E, as we believe the shipping industry just passed the upcycle.Maintain a Neutral rating on PSL, with a fair price of Bt15.50

Precious Shipping (PSL) - Entering High Season, but Long-Term Outlook Is Weak

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

<ul>
<li>3Q22 net profit came out better than market and our expectation at Bt1.3bn(-10%YoY, -19%QoQ).YoY andQoQ decrease in earnings dragged by a drop in average TC rate to five-quarter low atUS$19,840 </li>
<li>3Q22 profit fell QoQ and YoY but above our expectation PSL reports 3Q22 net profit at Bt1.3bn (-10%YoY,-19%QoQ).A drop in earnings was pressured by contraction in in PSL’s average earnings</li>
<li>However, average market TC rate for Supramax and Handy-sized are reported at US19,728 (-33%YoY -32%QoQ) and US$18,709(-42%YoY -32%QoQ). Handy-sized segment remained discount to market due to smaller fleet size relative </li>
</ul>


3Q22 net profit came out better than market and our expectation at Bt1.3bn(-10%YoY, -19%QoQ).YoY andQoQ decrease in earnings dragged by a drop in average TC rate to five-quarter low atUS$19,840 
3Q22 profit fell QoQ and YoY but above our expectation PSL reports 3Q22 net profit at Bt1.3bn (-10%YoY,-19%QoQ).A drop in earnings was pressured by contraction in in PSL’s average earnings
However, average market TC rate for Supramax and Handy-sized are reported at US19,728 (-33%YoY -32%QoQ) and US$18,709(-42%YoY -32%QoQ). Handy-sized segment remained discount to market due to smaller fleet size relative 


PSL : Demand for Dry Bulk Trading Should Remain Supportive

Thailand

Precious Shipping Public Company Limited is a ship owner providing regional marine shipping services. The Company operates in the tramp freight market sector where its vessels are employed on a time charter as well as voyage charter basis.  Precious Shipping has a network of shipping agents worldwide.

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Precious Shipping (PSL TB)

Precious Shipping - Quarterly Momentum Was Eroded by Freight Rate’s Decline

We downgrade PSL to a Neutral rating with a new 2025E fair price of Bt9.04 (from an Outperform rating and the fair price of Bt11.40 previously).

Krungthai XSpring

Precious Shipping - 2Q24 Core Profit Gained 85% YoY and 29% QoQ

KTX maintains an Outperform rating and the 12M FV of Bt11.40, based on a required return of 8.52%. Our valuation metrics suggest that the current...

Krungthai XSpring

Precious Shipping - Seasonal High in 3Q and Healthy Long-Term Cycle

We reinitiate our coverage on PSL with an Outperform rating and a 12M FV of Bt11.40, based on a required return of 8.52%.

Krungthai XSpring

Precious Shipping (PSL) - Entering High Season, but Long-Term Outlook Is Weak

PSL’s performance varies in line with global freight rates, which are expected to rebound in the short term after the sharp plunge in 4Q22

Krungthai XSpring

PSL : Demand for Dry Bulk Trading Should Remain Supportive

3Q22 net profit came out better than market and our expectation at Bt1.3bn (-10%YoY, -19%QoQ). YoY and QoQ decrease in earnings dragged by a drop...

Pi Securities PCL, Thailand

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