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

<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

<ul>
<li>We maintain BUY recommendation for SAPPE with a target price of Bt43.0 Yesterday analyst meeting came out with a positive tone given its solid long-term revenue growth outlook. However,SAPPE’s profit </li>
<li>MOGU MOGU is on demand Management revised up target revenue growth in 2022 from 15%-20% to30%-35%backed by strong sales momentum for exported markets while target domestic sales to recover HoH </li>
<li>We maintain positive view on its long-term growth outlook backed by solid demand for MOGU MOGU which have been proving by No.1 market share in fruit juice drinks category </li>
</ul>


We maintain BUY recommendation for SAPPE with a target price of Bt43.0 Yesterday analyst meeting came out with a positive tone given its solid long-term revenue growth outlook. However,SAPPE’s profit 
MOGU MOGU is on demand Management revised up target revenue growth in 2022 from 15%-20% to30%-35%backed by strong sales momentum for exported markets while target domestic sales to recover HoH 
We maintain positive view on its long-term growth outlook backed by solid demand for MOGU MOGU which have been proving by No.1 market share in fruit juice drinks category 


SAPPE : Continue Deliver Solid Earnings in 3Q22

<ul>
<li>Excluding onetime items, SAPPE’s 2Q22 core profit came in at Bt179m (+41%YoY, +18%QoQ), all-time-high, above our expectation and BB consensus estimated. Impressive result supported by a record high</li>
<li>MOGU MOGU drove 2Q22 earnings The 2Q22 net profit rose to all-time-high of Bt167m (+32%YoY, +9%QoQ) driven by a solid Mogu Mogu sales (the best-selling products in export markets).</li>
<li>The 2Q22 revenue rose to all-time-high of Bt1.2bn (+39%YoY, +21%QoQ), thanks to continues growth in international markets especially from Asia (+85%YoY) and EU &amp; America (+63%YoY) due to re-stocking products </li>
</ul>


Excluding onetime items, SAPPE’s 2Q22 core profit came in at Bt179m (+41%YoY, +18%QoQ), all-time-high, above our expectation and BB consensus estimated. Impressive result supported by a record high
MOGU MOGU drove 2Q22 earnings The 2Q22 net profit rose to all-time-high of Bt167m (+32%YoY, +9%QoQ) driven by a solid Mogu Mogu sales (the best-selling products in export markets).
The 2Q22 revenue rose to all-time-high of Bt1.2bn (+39%YoY, +21%QoQ), thanks to continues growth in international markets especially from Asia (+85%YoY) and EU &amp; America (+63%YoY) due to re-stocking products 


SAPPE : Solid Export Sales Drove 2Q22 Profit to New High

<ul>
<li>Yesterday analyst meeting came out with a positive tone.We reiterate our BUY rating for SAPPE with a target price of Bt35.25 (+10% from previous TP)based on 24xPE’22E, close to +1SD</li>
<li>Management targeted revenue at Bt10bn by 2026 or +22%CAGR(2022-26). •In our view, SAPPE target is quite challenging amid concern over rising inflation situation. </li>
<li>We expect 2Q22 earnings to continue to grow YoY and QoQ supported by (1) higher oversea market penetration, (2) distribution channel expansion,  (3) more effective marketing activities</li>
</ul>


Yesterday analyst meeting came out with a positive tone.We reiterate our BUY rating for SAPPE with a target price of Bt35.25 (+10% from previous TP)based on 24xPE’22E, close to +1SD
Management targeted revenue at Bt10bn by 2026 or +22%CAGR(2022-26). •In our view, SAPPE target is quite challenging amid concern over rising inflation situation. 
We expect 2Q22 earnings to continue to grow YoY and QoQ supported by (1) higher oversea market penetration, (2) distribution channel expansion,  (3) more effective marketing activities


SAPPE: Targets to Hit Revenue at Bt10bn by 2026

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 : 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

SAPPE : Continue Deliver Solid Earnings in 3Q22

We maintain BUY recommendation for SAPPE with a target price of Bt43.0 Yesterday analyst meeting came out with a positive tone given its solid long...

Pi Securities PCL, Thailand

SAPPE : Solid Export Sales Drove 2Q22 Profit to New High

Excluding onetime items, SAPPE’s 2Q22 core profit came in at Bt179m (+41%YoY, +18%QoQ), all-time-high, above our expectation and BB consensus...

Pi Securities PCL, Thailand

SAPPE: Targets to Hit Revenue at Bt10bn by 2026

Yesterday analyst meeting came out with a positive tone. We reiterate our BUY rating for SAPPE with a target price of Bt35.25 (+10% from previous...

Pi Securities PCL, Thailand

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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

SAPPE : Continue Deliver Solid Earnings in 3Q22

We maintain BUY recommendation for SAPPE with a target price of Bt43.0 Yesterday analyst meeting came out with a positive tone given its solid long...

Pi Securities PCL, Thailand

SAPPE : Solid Export Sales Drove 2Q22 Profit to New High

Excluding onetime items, SAPPE’s 2Q22 core profit came in at Bt179m (+41%YoY, +18%QoQ), all-time-high, above our expectation and BB consensus...

Pi Securities PCL, Thailand

SAPPE: Targets to Hit Revenue at Bt10bn by 2026

Yesterday analyst meeting came out with a positive tone. We reiterate our BUY rating for SAPPE with a target price of Bt35.25 (+10% from previous...

Pi Securities PCL, Thailand