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

Somboon Advance Technology P / Equity Bottom-Up

<ul><li>We downgrade our rating to Neutral from Outperform.</li><li>While the valuation matrix suggests that the current valuation is undervalued, we have a neutral view on both the tactical and long-term growth outlooks.</li><li>We have derived a fair value of Bt21.60, based on a required rate of return of 10.8% and the equity risk premium (ERP) assessed through the multiple regression model, in which the economic parameters and the specific factors of the stock (auto output) were used.</li></ul>

We downgrade our rating to Neutral from Outperform.While the valuation matrix suggests that the current valuation is undervalued, we have a neutral view on both the tactical and long-term growth outlooks.We have derived a fair value of Bt21.60, based on a required rate of return of 10.8% and the equity risk premium (ERP) assessed through the multiple regression model, in which the economic parameters and the specific factors of the stock (auto output) were used.

Somboon Advance Technology - Solid Fundamentals but No Excitement

Thematic (Sector/Industry)

<ul><li>We recommend selling to take profit on AMANAH and TOG (with the returns since they were added at +7.88% and +13.60%, respectively), as they have fallen out of our top rankings.</li><li>We add AJ to the portfolio thanks to the positive momentum for demand for commodity goods, which has continued to grow alongside the demand growth in sanitary products amid the spread of infectious diseases. This should drive the growth of demand for AJ’s packaging film.</li><li>We project the 2022E earnings at Bt625mn (+46.02% YoY).</li></ul>

We recommend selling to take profit on AMANAH and TOG (with the returns since they were added at +7.88% and +13.60%, respectively), as they have fallen out of our top rankings.We add AJ to the portfolio thanks to the positive momentum for demand for commodity goods, which has continued to grow alongside the demand growth in sanitary products amid the spread of infectious diseases. This should drive the growth of demand for AJ’s packaging film.We project the 2022E earnings at Bt625mn (+46.02% YoY).

<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

Thailand

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)

Somboon Advance Technology - Solid Fundamentals but No Excitement

While the valuation matrix suggests that the current valuation is undervalued, we have a neutral view on both the tactical and long-term growth...

Krungthai XSpring

Small Cap Top Picks - August 5, 2022

We recommend selling to take profit on AMANAH and TOG (with the returns since they were added at +7.88% and +13.60%, respectively), as they have...

Krungthai XSpring

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

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