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.

A full service Thai brokerage

Head of Research, Krungthai XSpring

Waraporn Wiboonkanarak

Head of Research

Equity Bottom-Up

<ul><li>We switch our rating to Underperform (from Neutral).</li><li>The valuation metrics suggest a more optimistic view on the earnings growth prospects (due to the low base in 2024E), but the valuation is unattractive both in terms of the fundamentals and the tactical view.</li><li>Our 12M forward fair value, based on the earnings yield method, has been revised down to Bt16.30 (vs. Bt23.60) due to downward revisions to our earnings estimates and an increase in the required return as the discount rate to 19.9% (from 19.5% previously).</li></ul>

We switch our rating to Underperform (from Neutral).The valuation metrics suggest a more optimistic view on the earnings growth prospects (due to the low base in 2024E), but the valuation is unattractive both in terms of the fundamentals and the tactical view.Our 12M forward fair value, based on the earnings yield method, has been revised down to Bt16.30 (vs. Bt23.60) due to downward revisions to our earnings estimates and an increase in the required return as the discount rate to 19.9% (from 19.5% previously).

Aapico Hitech - 2H24E Earnings to Accelerate, but Valuation Stretched