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>Sales and profit for 3Q24E are expected to decline YoY and QoQ due to weak international sales, a stronger baht, reduced production rates, which put pressure on gross margins, and an expected increase in SG&amp;A to sales.</li><li>The 2024-26E core profit estimates have been revised down by 9- 22%, reflecting lower sales forecasts, reduced profit margins, and higher SG&amp;A to sales.</li><li>The valuation metrics suggest that we maintain an Outperform rating (new FV at Bt88.47, based on a required return of 5%, reflecting a target PER of 20x). </li></ul>

Sales and profit for 3Q24E are expected to decline YoY and QoQ due to weak international sales, a stronger baht, reduced production rates, which put pressure on gross margins, and an expected increase in SG&amp;A to sales.The 2024-26E core profit estimates have been revised down by 9- 22%, reflecting lower sales forecasts, reduced profit margins, and higher SG&amp;A to sales.The valuation metrics suggest that we maintain an Outperform rating (new FV at Bt88.47, based on a required return of 5%, reflecting a target PER of 20x). 

Sappe - Weak 3Q24E Earnings Outlook; 2024-26E Forecasts Revised Down

<ul><li>The 2Q24 profit hit a new record and beat our forecast, driven by a better-than-expected profit margin, while sales grew in line with the expectation.</li><li>3Q is a good sales season for overseas markets, especially Europe and the US, supporting the profit growth momentum. We maintain our 2024E profit estimate.</li><li>KTX maintains an Outperform rating, with a 12M FV of Bt97.77, based on the earnings yield and a required return of 5.1%.</li></ul>

The 2Q24 profit hit a new record and beat our forecast, driven by a better-than-expected profit margin, while sales grew in line with the expectation.3Q is a good sales season for overseas markets, especially Europe and the US, supporting the profit growth momentum. We maintain our 2024E profit estimate.KTX maintains an Outperform rating, with a 12M FV of Bt97.77, based on the earnings yield and a required return of 5.1%.

Sappe - Record-High Sales and Profit in 2Q24

<ul><li>2Q24E core profit is expected to have grown 19% YoY and 7% QoQ driven by increased overseas sales growth and GPM YoY and QoQ.</li><li>3 Q is a peak sales season for overseas markets, especially Europe and the US, which would boost earnings growth. We maintain 2024E earnings growth.</li><li>KTX switch our rating to “Outperform” with the new fair value of Bt9 7 . 7 3 , based on the earnings yield and the required return of 5.1% (vs. Neutral, FV= Bt96.38 previously).</li></ul>

2Q24E core profit is expected to have grown 19% YoY and 7% QoQ driven by increased overseas sales growth and GPM YoY and QoQ.3 Q is a peak sales season for overseas markets, especially Europe and the US, which would boost earnings growth. We maintain 2024E earnings growth.KTX switch our rating to “Outperform” with the new fair value of Bt9 7 . 7 3 , based on the earnings yield and the required return of 5.1% (vs. Neutral, FV= Bt96.38 previously).

Sappe - 2Q24E Sales and Profit to Hit New Record Highs

<ul><li>The 2Q24E sales and profit are expected to grow 21% YoY and 9% QoQ, respectively, hitting new records.</li><li>With the peak sales season in overseas markets in 3Q, profit momentum will accelerate and hit a new high in 3Q24E.</li><li>We revised up our core profit forecasts for 2024-26E by 3-6%, reflecting a higher-than-expected profit margin and operating expenses to sales in 1Q24.</li></ul>

The 2Q24E sales and profit are expected to grow 21% YoY and 9% QoQ, respectively, hitting new records.With the peak sales season in overseas markets in 3Q, profit momentum will accelerate and hit a new high in 3Q24E.We revised up our core profit forecasts for 2024-26E by 3-6%, reflecting a higher-than-expected profit margin and operating expenses to sales in 1Q24.

Sappe Tb - Strong Sales and Profit in 2Q24E; 2024-26E Earnings Forecasts Revised Up

<ul><li>The 1Q24 profit hit a new high and marked bigger-than-expected growth due to an upbeat margin. Sales grew in line with the expectation.</li><li>1H is the peak sales season of the beverage business in Thailand and Asia, and 3Q is a good sales season for European and US markets.</li><li>We maintain our 2024E earnings forecast, with potential upside.</li></ul>

The 1Q24 profit hit a new high and marked bigger-than-expected growth due to an upbeat margin. Sales grew in line with the expectation.1H is the peak sales season of the beverage business in Thailand and Asia, and 3Q is a good sales season for European and US markets.We maintain our 2024E earnings forecast, with potential upside.

Sappe -1Q24 Sales and Profit Growth Hit New Highs

Thailand

Sappe Public Company Limited manufactures and distributes health drinks. The Company manufactures dietary and fruit juice drinks. Sappe distributes their products internationally.

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Sappe Pcl (SAPPE TB)

Sappe - Weak 3Q24E Earnings Outlook; 2024-26E Forecasts Revised Down

The 2024-26E core profit estimates have been revised down by 9- 22%, reflecting lower sales forecasts, reduced profit margins, and higher SG&A to...

Krungthai XSpring

Sappe - Record-High Sales and Profit in 2Q24

The 2Q24 profit hit a new record and beat our forecast, driven by a better-than-expected profit margin, while sales grew in line with the expectation.

Krungthai XSpring

Sappe - 2Q24E Sales and Profit to Hit New Record Highs

2Q24E core profit is expected to have grown 19% YoY and 7% QoQ driven by increased overseas sales growth and GPM YoY and QoQ.

Krungthai XSpring

Sappe Tb - Strong Sales and Profit in 2Q24E; 2024-26E Earnings Forecasts Revised Up

We revised up our core profit forecasts for 2024-26E by 3-6%, reflecting a higher-than-expected profit margin and operating expenses to sales in 1Q24.

Krungthai XSpring

Sappe -1Q24 Sales and Profit Growth Hit New Highs

The 1Q24 profit hit a new high and marked bigger-than-expected growth due to an upbeat margin. Sales grew in line with the expectation.

Krungthai XSpring

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