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>In January 2024, Thai export value demonstrated significant growth, surpassing expectations with a YoY increase of 10%.</li><li>This robust performance contrasts with December 2023's growth of 4.7% YoY and the NESDC’s export growth projection for this year at 2.9%.</li><li>The healthy growth can be attributed to stronger-than-anticipated demand from trading partners, both in the primary markets — such as the US, which experienced a YoY increase of 13.7% compared to 0.3% in December — and secondary markets like Hong Kong and Russia. </li></ul>

In January 2024, Thai export value demonstrated significant growth, surpassing expectations with a YoY increase of 10%.This robust performance contrasts with December 2023's growth of 4.7% YoY and the NESDC’s export growth projection for this year at 2.9%.The healthy growth can be attributed to stronger-than-anticipated demand from trading partners, both in the primary markets — such as the US, which experienced a YoY increase of 13.7% compared to 0.3% in December — and secondary markets like Hong Kong and Russia. 

Equity Bottom-Up

<ul><li>The 2Q23E sales and earnings are expected to have been very strong.</li><li>Earnings are forecast to grow by 75% YoY and 6% QoQ in 2Q23E and then hit new highs in 3Q23E due to the peak sales season for overseas markets.</li><li>We expect to see earnings growth of around 70-80% YoY in 3Q23E before entering the low season in the 4Q.</li></ul>

The 2Q23E sales and earnings are expected to have been very strong.Earnings are forecast to grow by 75% YoY and 6% QoQ in 2Q23E and then hit new highs in 3Q23E due to the peak sales season for overseas markets.We expect to see earnings growth of around 70-80% YoY in 3Q23E before entering the low season in the 4Q.

SAPPE TB - Strong Sales and Earnings Momentum in 2Q23E

<ul><li>KTX has revised up our 2023-25E earnings projections by 39-48% to reflect the fact that the 1Q23 earnings significantly beat our forecast.</li><li>Earnings are expected to hit a new high in 2Q-3Q23E thanks to the peak sales season in the domestic market as well as export markets.</li><li>We project earnings growth at around 70-80% YoY in 2Q-3Q23E before entering the low season in 4Q23E.</li></ul>

KTX has revised up our 2023-25E earnings projections by 39-48% to reflect the fact that the 1Q23 earnings significantly beat our forecast.Earnings are expected to hit a new high in 2Q-3Q23E thanks to the peak sales season in the domestic market as well as export markets.We project earnings growth at around 70-80% YoY in 2Q-3Q23E before entering the low season in 4Q23E.

SAPPE TB - Strong Earnings Momentum; Earnings Forecasts and Rating Revised Up

<div><div><div><ul><li>SAPPE’s earnings are expected to achieve a two-year CAGR of 16%, down from a 39% CAGR in 2021-23E due to the high base in 2022, with a lower dividend yield at 3-4% p.a. vs. 5% expected previously.</li><li>Our valuation matrix suggests a downgrade of our rating to Underperform because the share price is fully valued and already reflects the bright earnings prospects in the next few years.</li><li><div><div><p>KTX continues to believe that the successful expansion of Mogu Mogu products to overseas markets creates the possibility for SAPPE to expand its other products, which would drive sales growth.</p></div></div></li></ul></div></div></div>

SAPPE’s earnings are expected to achieve a two-year CAGR of 16%, down from a 39% CAGR in 2021-23E due to the high base in 2022, with a lower dividend yield at 3-4% p.a. vs. 5% expected previously.Our valuation matrix suggests a downgrade of our rating to Underperform because the share price is fully valued and already reflects the bright earnings prospects in the next few years.KTX continues to believe that the successful expansion of Mogu Mogu products to overseas markets creates the possibility for SAPPE to expand its other products, which would drive sales growth.

Sappe - Share Price Has Already Factored in Strong Earnings Prospects

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>Excluding onetime items, SAPPE’s 3Q22 core profit reach to an all-time-high at Bt204m (+40%YoY, +14%QoQ), beat our expectation and above BB consensus estimated. Impressive result supported</li>
<li>Record high earnings for third straight quarter Its 3Q22 net profit rose to all-time-high at Bt178m(+26%YoY,+7%QoQ).After earnings revision, the 9M22 result accounted for 85% of full-year net profit in 2022.</li>
<li>Revenue rose to all-time-high of Bt1.28bn (+28%YoY, +4%QoQ), thanks to continues growth in international markets especially from Asia (+39%YoY), EU &amp; America (+36%YoY), and Middle east (+101%YoY)</li>
</ul>


Excluding onetime items, SAPPE’s 3Q22 core profit reach to an all-time-high at Bt204m (+40%YoY, +14%QoQ), beat our expectation and above BB consensus estimated. Impressive result supported
Record high earnings for third straight quarter Its 3Q22 net profit rose to all-time-high at Bt178m(+26%YoY,+7%QoQ).After earnings revision, the 9M22 result accounted for 85% of full-year net profit in 2022.
Revenue rose to all-time-high of Bt1.28bn (+28%YoY, +4%QoQ), thanks to continues growth in international markets especially from Asia (+39%YoY), EU &amp; America (+36%YoY), and Middle east (+101%YoY)


SAPPE : Impressive Sales Form MOGU MOGU Drove 3Q22 Earnings to All-Time-High

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)

Economic Update – Exports & Imports

This robust performance contrasts with December 2023's growth of 4.7% YoY and the NESDC’s export growth projection for this year at 2.9%.

Krungthai XSpring

SAPPE TB - Strong Sales and Earnings Momentum in 2Q23E

Earnings are forecast to grow by 75% YoY and 6% QoQ in 2Q23E and then hit new highs in 3Q23E due to the peak sales season for overseas markets.

Krungthai XSpring

SAPPE TB - Strong Earnings Momentum; Earnings Forecasts and Rating Revised Up

KTX has revised up our 2023-25E earnings projections by 39-48% to reflect the fact that the 1Q23 earnings significantly beat our forecast.

Krungthai XSpring

SAPPE : Impressive Sales Form MOGU MOGU Drove 3Q22 Earnings to All-Time-High

Excluding onetime items, SAPPE’s 3Q22 core profit reach to an all-time-high at Bt204m (+40%YoY, +14%QoQ), beat our expectation and above BB...

Pi Securities PCL, Thailand

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Economic Update – Exports & Imports

This robust performance contrasts with December 2023's growth of 4.7% YoY and the NESDC’s export growth projection for this year at 2.9%.

Krungthai XSpring

SAPPE TB - Strong Sales and Earnings Momentum in 2Q23E

Earnings are forecast to grow by 75% YoY and 6% QoQ in 2Q23E and then hit new highs in 3Q23E due to the peak sales season for overseas markets.

Krungthai XSpring

SAPPE TB - Strong Earnings Momentum; Earnings Forecasts and Rating Revised Up

KTX has revised up our 2023-25E earnings projections by 39-48% to reflect the fact that the 1Q23 earnings significantly beat our forecast.

Krungthai XSpring

Sappe - Share Price Has Already Factored in Strong Earnings Prospects

SAPPE’s earnings are expected to achieve a two-year CAGR of 16%, down from a 39% CAGR in 2021-23E due to the high base in 2022, with a lower...

Krungthai XSpring

SAPPE : Impressive Sales Form MOGU MOGU Drove 3Q22 Earnings to All-Time-High

Excluding onetime items, SAPPE’s 3Q22 core profit reach to an all-time-high at Bt204m (+40%YoY, +14%QoQ), beat our expectation and above BB...

Pi Securities PCL, Thailand