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)

<div><div><div><div><ul><li>Yesterday, our Small Cap portfolio generated a return of +0.17%, lower than the SET Index’s return of +0.35%, as the market was driven mainly by the electronics sector, which has a minor weighting in our portfolio.</li><li>The stocks in our portfolio whose share prices gained notably yesterday were TK (+2.02%), DOD (+1.94%), WICE (+0.84%) and TOG (+0.63%).</li><li><span style="font-size: var(--content-font-size);">AH’s main business is OEM auto parts, contributing 74% of revenue in 2021.</span></li></ul></div></div></div></div>

Yesterday, our Small Cap portfolio generated a return of +0.17%, lower than the SET Index’s return of +0.35%, as the market was driven mainly by the electronics sector, which has a minor weighting in our portfolio.The stocks in our portfolio whose share prices gained notably yesterday were TK (+2.02%), DOD (+1.94%), WICE (+0.84%) and TOG (+0.63%).AH’s main business is OEM auto parts, contributing 74% of revenue in 2021.

<ul>
<li>Yesterday, our Small Cap portfolio generated a return of -0.73% vs. the SET Index at -0.26%.</li>
<li>Most stocks in the portfolio declined in line with the market’s movement after the index was unable to surpass the resistance at 1,600 points.</li>
<li>The stocks with the biggest price declines were DOHOME (-3.77%), DOD (-2.46%), (WICE -2.46%) and RS (-1.89%).</li>
</ul>


Yesterday, our Small Cap portfolio generated a return of -0.73% vs. the SET Index at -0.26%.
Most stocks in the portfolio declined in line with the market’s movement after the index was unable to surpass the resistance at 1,600 points.
The stocks with the biggest price declines were DOHOME (-3.77%), DOD (-2.46%), (WICE -2.46%) and RS (-1.89%).


Cross Asset Strategy

<ul><li>We suggest taking profit on BAFS, M, SIS and LST (with the returns since they were added at +7.7%, +1.5%, +6.6% and +1.0%, respectively) because they have fallen out of our top rankings.</li><li>We recommend replacing them with AMANAH and KSL.</li><li>AMANAH’s 2022E net profit is expected to remain flat YoY at Bt309mn, based on our conservative assumption for loan portfolio growth of +10.0% YoY.</li></ul>

We suggest taking profit on BAFS, M, SIS and LST (with the returns since they were added at +7.7%, +1.5%, +6.6% and +1.0%, respectively) because they have fallen out of our top rankings.We recommend replacing them with AMANAH and KSL.AMANAH’s 2022E net profit is expected to remain flat YoY at Bt309mn, based on our conservative assumption for loan portfolio growth of +10.0% YoY.

Small Cap Top Picks - Changes in Recommended List

Equity Bottom-Up

Somboon Advance Technology P / Equity Bottom-Up

<div><div><div><p><strong>2Q21 results beat forecast, upgrade rating to Buy</strong><br>SAT reversed to mark a sturdy profit in 1H21 thanks to the solid recovery of both auto and non-auto parts revenue. In light of the stronger margin achieved in 1H21, together with the continued auto recovery momentum, our 2021E earnings estimate is revised up by 23%. This prompts us to raise our target price to Bt25.60, pegged with an unchanged PER of 12x (+0.5 S.D.). With the wider gap to the target price, we upgrade our rating to Buy</p><div></div></div></div></div>

2Q21 results beat forecast, upgrade rating to Buy SAT reversed to mark a sturdy profit in 1H21 thanks to the solid recovery of both auto and non-auto parts revenue. In light of the stronger margin achieved in 1H21, together with the continued auto recovery momentum, our 2021E earnings estimate is revised up by 23%. This prompts us to raise our target price to Bt25.60, pegged with an unchanged PER of 12x (+0.5 S.D.). With the wider gap to the target price, we upgrade our rating to Buy

Company Update: Somboon Advance Technology Plc. (SAT)

<p>The confirmation of positive cases of COVID-19 among employees is not significantly impacting the company’s operation. The big leap YoY in 2Q21E earnings alongside the auto output recovery may create upside to our full-year forecast, causing us to leave our Hold rating unchanged.</p>

The confirmation of positive cases of COVID-19 among employees is not significantly impacting the company’s operation. The big leap YoY in 2Q21E earnings alongside the auto output recovery may create upside to our full-year forecast, causing us to leave our Hold rating unchanged.

Company Update: Somboon Advance Technology Plc.

Thailand

Thai Steel Cable PCL manufactures automobile parts.  The Company produces control cables and window regulators for automobile manufacturers.

Aapico Hitech Public Company Limited manufactures car assembly jigs and stamping dies used for manufacturing automobiles in assembly plants. The Company also manufactures OEM automotive parts and operates automobile dealership business.

Hwafong Rubber Thailand Public Company Limited manufactures and distributes of tire and tube of bicycle, motorcycle and industrial vehicle such as trolley, forklift and cart under brand Duro and Dunlop.

Fortune Parts Industry PCL manufactures automotive replacement ( R.E.M) parts. The Company's main product lines are for Japanese pick-up , truck , and passenger car , covering all major Japanese brands.

P.C.S. Machine Group Holding PCL is a holding company. The Company, through its subsidiaries, manufactures and sells automotive parts.

Inoue Rubber (Thailand) Public Company Limited manufactures motorcycle tubes and tires and industrial rubber goods.  Its products are supplied as OEM parts to domestic motorcycle manufacturers.

Thai Rung Union Car Public Company Limited manufactures metal and plastic parts for automotive and industrial machinery manufacturers. The Company also makes dies and jigs and is a full-facility auto assembler providing services from R&D to producing a range of vehicles.

Thai Rung Union Car Public Company Limited (TRU TB)

Thai Rung Union Car Public Company Limited

Goodyear (Thailand) Public Company Limited manufactures tires and tubes for automobiles, trucks, tractors, and commercial aircraft under Goodyear brand name.

Yuasa Battery (Thailand) Public Company Limited manufactures batteries for automobiles and motorcycles under Yuasa, Thunder Lite, and Yucon brands. Its products are sold domestically and exported to Asian, Middle East, African, European, and Latin American countries.

Interhides PCL manufactures leather automobile upholstery.  The Company markets its leather products to automobile manufacturers.

Gordon Auto Body Parts Co., Ltd. manufactures auto body parts such as hoods, fenders, doors, and side panels.  The Company also produces stamping molds. Gordon Auto Body Parts sells its products in Taiwan and exports to the United States, Canada, Europe, the Middle East, Australia, and Africa.

PT Indospring Tbk manufactures leaf and coil springs for motor vehicles under license of Mitsubishi Steel Manufacturing, Japan.  The Company also manufactures valve springs with license agreement with Murata Spring Co. Ltd., Japan. Through its subsidiaries, the Company also operates in the rolling mill industry.

Motonic Corporation manufactures automotive fuel injection system products. The Company's products include carburetors, throttle bodies, exhausting systems, LPG kits, rocker arms, oil filters, fuel pumps, and die casting parts.

AHRESTY CORPORATION manufactures light alloy diecasts mainly for auto industry. The Company makes recycled aluminum ingots and aluminum diecasts.  Ahresty also sells steel floorings and electric mowers.

T. RAD Co., Ltd. manufactures heat exchangers for automobiles, motorcycles, construction machinery, and boats.  The Company's products include radiators, oil coolers, and inter coolers for turbo engines.  T. RAD has its production facilities in the US, Thailand, China, India, and Taiwan.

DAE-IL Corporation(DIC) manufactures automotive parts and agricultural equipment such as gear and shaft used in vehicles for transmitting power.  DAE-IL supplies its products to automobile and auto-parts companies such as Hyundai, KIA, GM Daewoo, etc.

St-Gobain Sekurit India Ltd manufactures automotive safety glass. The Company's products include laminated safety glass, flat toughened glasses and bend tempered glasses.

SANDEN HOLDINGS CORPORATION manufactures air conditioning and its parts for automobiles. The Company's products include evaporators, inter coolers, and compressors. Sanden also produces refrigerating showcases for grocery stores and vending machines.

Wuling Motors Holdings Limited manufactures motor vehicle engines, parts and special vehicles in China. The Company's activities also include securities dealing, margin financing, money lending and property investment.

MS Autotech Co., Ltd. manufactures and markets automotive parts and equipments. The company products include front side member module, rear floor, center floor, and door module for automobile platform.

Somboon Advance Technology PCL manufactures and sells automotive parts for sale to automobile manufacturers. The Company's products include axle shafts, leaf springs, disk and drum brakes, manifold exhaust, fly wheels, stabilizer bars, and coil springs.

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Somboon Advance Technology P (SAT TB)

Small Cap Top Picks - August 4, 2022

The stocks in our portfolio whose share prices gained notably yesterday were TK (+2.02%), DOD (+1.94%), WICE (+0.84%) and TOG (+0.63%).

Krungthai XSpring

Small Cap Top Picks - August 3, 2022

Most stocks in the portfolio declined in line with the market’s movement after the index was unable to surpass the resistance at 1,600 points.

Krungthai XSpring

Small Cap Top Picks - Changes in Recommended List

We suggest taking profit on BAFS, M, SIS and LST (with the returns since they were added at +7.7%, +1.5%, +6.6% and +1.0%, respectively) because...

Krungthai XSpring

Company Update: Somboon Advance Technology Plc. (SAT)

2Q21 results beat forecast, upgrade rating to Buy, SAT reversed to mark a sturdy profit in 1H21 thanks to the solid recovery of both auto and non...

Krungthai XSpring

Company Update: Somboon Advance Technology Plc.

Big leap expected in 2Q21E earnings, the confirmation of positive cases of COVID-19 among employees is not significantly impacting the company’s...

Krungthai XSpring

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