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>Negative view from the analyst meeting: TU revised down its 2023E sales and GPM targets as well as the Capex plan.</li><li>While we expect HoH earnings improvement in 2H23E due to seasonality (but a YoY decline due to the high base of Bt2.5bn in profit in 3Q22 and Bt1.2bn in 4Q22), the likelihood of sustained high tuna prices and lower demand (with a gradual improvement in only some markets) will impede the firm’s profitability.</li><li>Although the current share price implies limited downside risk, we do not see any potential upside. </li></ul></div></div></div>

Negative view from the analyst meeting: TU revised down its 2023E sales and GPM targets as well as the Capex plan.While we expect HoH earnings improvement in 2H23E due to seasonality (but a YoY decline due to the high base of Bt2.5bn in profit in 3Q22 and Bt1.2bn in 4Q22), the likelihood of sustained high tuna prices and lower demand (with a gradual improvement in only some markets) will impede the firm’s profitability.Although the current share price implies limited downside risk, we do not see any potential upside. 

Analyst Briefing - Thai Union Group Plc. (TU) - August 9, 2023

<ul><li>TU reported a 2Q23 net profit at Bt1.0bn (-37% YoY, +1% QoQ). The earnings fell YoY because of a decline in sales as well as a dilution effect after ITC was listed to the SET.</li><li>The 2Q23 earnings beat our forecast by 25% as the GPM of 16.9% was better than our estimate of 16.2%.</li><li>Operating expenses to sales marked at 11.7%, lower than the expectation of 12.6% (approximately Bt400mn), and credit tax expenses exceeded our expectation (by around Bt100mn).</li></ul>

TU reported a 2Q23 net profit at Bt1.0bn (-37% YoY, +1% QoQ). The earnings fell YoY because of a decline in sales as well as a dilution effect after ITC was listed to the SET.The 2Q23 earnings beat our forecast by 25% as the GPM of 16.9% was better than our estimate of 16.2%.Operating expenses to sales marked at 11.7%, lower than the expectation of 12.6% (approximately Bt400mn), and credit tax expenses exceeded our expectation (by around Bt100mn).

Earnings Review - Thai Union Group Plc. (TU) - AUGUST 8, 2023

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Big C Supercenter / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/big-c-supercenter-pcl" target="_blank" data-smartkarma-citation="entities:16801:1" rel="noopener">Big C Supercenter (BIGC TB)</a>  is looking to raise around US$1bn in its upcoming Thailand IPO. </li>
<li>Big C is engaged in modern retail business and wholesale and trade support business. As of Dec 22, it had 1,651 retail stores in Thailand</li>
<li>In this note, we talk about the not-so-positive aspects of the deal.</li>
</ul>



Big C Supercenter (BIGC TB)  is looking to raise around US$1bn in its upcoming Thailand IPO. 
Big C is engaged in modern retail business and wholesale and trade support business. As of Dec 22, it had 1,651 retail stores in Thailand
In this note, we talk about the not-so-positive aspects of the deal.


Big C Retail Pre-IPO - The Negatives - Hasn't Recovered from COVID

<ul>
<li>
<a href="https://www.smartkarma.com/entities/big-c-supercenter-pcl" target="_blank" data-smartkarma-citation="entities:16801:1" rel="noopener">Big C Supercenter (BIGC TB)</a> is looking to raise around US$1bn in its upcoming Thailand IPO. </li>
<li>Big C is engaged in modern retail business and wholesale and trade support business. As of Dec 22, it had 1,651 retail stores in Thailand</li>
<li>In this note, we talk about the company background and the positive aspects of the deal.</li>
</ul>



Big C Supercenter (BIGC TB) is looking to raise around US$1bn in its upcoming Thailand IPO. 
Big C is engaged in modern retail business and wholesale and trade support business. As of Dec 22, it had 1,651 retail stores in Thailand
In this note, we talk about the company background and the positive aspects of the deal.


Big C Retail Pre-IPO - The Positives - Has a Strong Presence

APAC IPOs & Placements, Aequitas Research

Ethan Aw

APAC IPOs & Placements

CPF Global Food Solution / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/cpf-global-food-solution" target="_blank" data-smartkarma-citation="entities:37132:1" rel="noopener">CPF Global Food Solution (2247162D TB)</a> is looking to raise around US$1bn in its upcoming Thailand IPO. </li>
<li>CPF Global Food Solution (CPFGS) is a subsidiary of CP Foods Group, offering food products and services to food operators and consumers locally and internationally.</li>
<li>In this note, we talk about the not-so-positive aspects of the deal.</li>
</ul>



CPF Global Food Solution (2247162D TB) is looking to raise around US$1bn in its upcoming Thailand IPO. 
CPF Global Food Solution (CPFGS) is a subsidiary of CP Foods Group, offering food products and services to food operators and consumers locally and internationally.
In this note, we talk about the not-so-positive aspects of the deal.


CPF Global Food Solution Pre-IPO - The Negatives - Muted Growth Prospects

Thailand

Thai Union Group Public Company Limited produces and exports frozen and canned seafood products including frozen tuna loin, shrimp and cephalopod. The Company also produces canned pet foods from by products of its seafood process.  Additionally, the Company produces fish snack and canned tuna which are marketed locally.

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Thai Union Group (TU TB)

Analyst Briefing - Thai Union Group Plc. (TU) - August 9, 2023

While we expect HoH earnings improvement in 2H23E due to seasonality (but a YoY decline due to the high base of Bt2.5bn in profit in 3Q22 and...

Krungthai XSpring

Earnings Review - Thai Union Group Plc. (TU) - AUGUST 8, 2023

TU reported a 2Q23 net profit at Bt1.0bn (-37% YoY, +1% QoQ). The earnings fell YoY because of a decline in sales as well as a dilution effect...

Krungthai XSpring

Big C Retail Pre-IPO - The Negatives - Hasn't Recovered from COVID

Big C Supercenter (BIGC TB) is looking to raise around US$1bn in its upcoming Thailand IPO. In this note we talk about the not-so-positive aspects...

Sumeet Singh

Big C Retail Pre-IPO - The Positives - Has a Strong Presence

Big C Supercenter (BIGC TB) is looking to raise around US$1bn in its upcoming Thailand IPO. In this note, we talk about the postive aspects of the...

Sumeet Singh

CPF Global Food Solution Pre-IPO - The Negatives - Muted Growth Prospects

CPF Global Food Solution (2247162D TB) is looking to raise around US$1bn in its upcoming Thailand IPO. In this note, we talk about the not-so...

Ethan Aw

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