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>The valuation metrics have increased the attractiveness of the current fundamentals to undervalued (from neutral previously).</li><li>The latest stock price shows upside of 5% while the long-term growth outlook remains strong (with three-year profit growth projected at a CAGR of 15%).</li><li>The tactical upside risk remains limited. Hence, we maintain a Neutral rating with a fair value of Bt33.37, based on a required return of 3.3%, reflecting the target PER of 30x.</li></ul>

The valuation metrics have increased the attractiveness of the current fundamentals to undervalued (from neutral previously).The latest stock price shows upside of 5% while the long-term growth outlook remains strong (with three-year profit growth projected at a CAGR of 15%).The tactical upside risk remains limited. Hence, we maintain a Neutral rating with a fair value of Bt33.37, based on a required return of 3.3%, reflecting the target PER of 30x.

CP AXTRA - 3Q24E Core Profit Growth Expected at 31% YoY and Flat QoQ

<ul><li>The valuation metrics continue to indicate that the fundamentals are attractive for buying, with the share price suggesting potential upside of 13%.</li><li>We maintain our long-term bullish outlook, expecting earnings to grow at a 15% CAGR over the next three years.</li><li>However, we revise our tactical view to neutral from limited downside risk previously. </li></ul>

The valuation metrics continue to indicate that the fundamentals are attractive for buying, with the share price suggesting potential upside of 13%.We maintain our long-term bullish outlook, expecting earnings to grow at a 15% CAGR over the next three years.However, we revise our tactical view to neutral from limited downside risk previously. 

Cp Axtra - In-Line 2Q24 Earnings; Bullish Earnings Outlook

<ul><li>The valuation metrics indicate that the fundamentals are now attractive for buying (previously neutral), with the share price suggesting potential upside of 13%.</li><li>The tactical downside risk is currently very limited (previously neutral).</li><li>We maintain our long-term bullish outlook, expecting earnings to grow at a 15% CAGR over the next three years. </li></ul>

The valuation metrics indicate that the fundamentals are now attractive for buying (previously neutral), with the share price suggesting potential upside of 13%.The tactical downside risk is currently very limited (previously neutral).We maintain our long-term bullish outlook, expecting earnings to grow at a 15% CAGR over the next three years. 

Cp Axtra - 2Q4E Earnings Growth Expected at 40% YoY but a Drop of 14% QoQ

ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN Insight Provider

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

<ul>
<li>
<a href="https://www.smartkarma.com/entities/cp-axtra-pcl" target="_blank" data-smartkarma-citation="entities:5577:1" rel="noopener">CP Axtra (CPAXT TB)</a> is a merger upon a merger combining the Makro wholesale business and the Lotus hypermarket and supermarket businesses, along with a hybrid mall operation. </li>
<li>The combined entity continues to realise operational synergies in sourcing and logistics, with a strong B2B element. Omnichannel makes up more than 16% of sales and is growing rapidly.</li>
<li>
<a href="https://www.smartkarma.com/entities/cp-axtra-pcl" target="_blank" data-smartkarma-citation="entities:5577:1" rel="noopener">CP Axtra (CPAXT TB)</a> provides an alternative retail exposure to its parent <a href="https://www.smartkarma.com/entities/cp-all-pcl" target="_blank" data-smartkarma-citation="entities:13889:1" rel="noopener">CP ALL (CPALL TB)</a> with ongoing restructuring benefits still to be realised. Valuations look attractive relative to growth.  </li>
</ul>



CP Axtra (CPAXT TB) is a merger upon a merger combining the Makro wholesale business and the Lotus hypermarket and supermarket businesses, along with a hybrid mall operation. 
The combined entity continues to realise operational synergies in sourcing and logistics, with a strong B2B element. Omnichannel makes up more than 16% of sales and is growing rapidly.

CP Axtra (CPAXT TB) provides an alternative retail exposure to its parent CP ALL (CPALL TB) with ongoing restructuring benefits still to be realised. Valuations look attractive relative to growth.  


<ul><li>KTX maintains an Outperform rating, with a fair value of Bt33.21, based on a required rate of return of 3.0%.</li><li>Our valuation metrics suggest that the current share price is undervalued, while the long-term outlook is strong (expect three-year earnings growth at a CAGR of 15%).</li><li>The tactical view is neutral.</li></ul>

KTX maintains an Outperform rating, with a fair value of Bt33.21, based on a required rate of return of 3.0%.Our valuation metrics suggest that the current share price is undervalued, while the long-term outlook is strong (expect three-year earnings growth at a CAGR of 15%).The tactical view is neutral.

Cp Axtra -In-Line 1Q24 Earnings; Positive View on Earnings Outlook

Thailand

CP Axtra Public Company Limited operates a retail discount store chain. The Company sells food and consumer products to its registered customers including wholesalers, retailers, small businesses, caterers, and private individuals who hold its member cards. CP Axtra serves customers in Thailand.

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CP Axtra (CPAXT TB)

CP AXTRA - 3Q24E Core Profit Growth Expected at 31% YoY and Flat QoQ

The valuation metrics have increased the attractiveness of the current fundamentals to undervalued (from neutral previously).

Krungthai XSpring

Cp Axtra - In-Line 2Q24 Earnings; Bullish Earnings Outlook

The valuation metrics continue to indicate that the fundamentals are attractive for buying, with the share price suggesting potential upside of 13%.

Krungthai XSpring

Cp Axtra - 2Q4E Earnings Growth Expected at 40% YoY but a Drop of 14% QoQ

The valuation metrics indicate that the fundamentals are now attractive for buying (previously neutral), with the share price suggesting potential...

Krungthai XSpring

CP Axtra (CPAXT TB) - Symbiotic Alliance

CP Axtra (CPAXT TB) provides an alternative retail exposure to its parent CP ALL (CPALL TB) with ongoing restructuring benefits still to be...

Angus Mackintosh

Cp Axtra -In-Line 1Q24 Earnings; Positive View on Earnings Outlook

Our valuation metrics suggest that the current share price is undervalued, while the long-term outlook is strong (expect three-year earnings growth...

Krungthai XSpring

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