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

<div><div><div><div><ul><li>We expect BGRIM to report a 2Q23E net profit of Bt668mn, reversing from the net loss of Bt193mn in 2Q22 and up 68% QoQ.</li><li>The growth catalysts include 1) the wider margin of electricity sold to industrial users (IU) to Bt1 . 5 /unit (vs. Bt0.25/unit in 2Q22 and Bt1.32/unit in 1Q23), in line with the trajectory of Ft (note that the Ft from May to August 2023 is Bt0.9127/unit, +Bt0.665/unit from the same period last year at Bt0.2477/unit but -Bt0.6365/unit from Bt1 .549/unit in January to April 2023), as well as lower gas costs to Bt404/mmbtu ( -4% YoY, -16% QoQ); 2) larger electricity volume sold to EGAT by 7% QoQ on the full-quarter contribution of BGPM2R (SPP replacement; COD in March 2023); 3) larger steam sales volume to IU of 218k tons (+13% YoY, +12% QoQ), offsetting the lower steam price.</li><li>Meanwhile, the depreciation of the USD is likely to have led to an FX loss of around Bt168mn in the quarter, with the net impact cushioned by effective management of financial activities, resulting in lower finance costs to a similar extent.</li></ul></div></div></div></div>

We expect BGRIM to report a 2Q23E net profit of Bt668mn, reversing from the net loss of Bt193mn in 2Q22 and up 68% QoQ.The growth catalysts include 1) the wider margin of electricity sold to industrial users (IU) to Bt1 . 5 /unit (vs. Bt0.25/unit in 2Q22 and Bt1.32/unit in 1Q23), in line with the trajectory of Ft (note that the Ft from May to August 2023 is Bt0.9127/unit, +Bt0.665/unit from the same period last year at Bt0.2477/unit but -Bt0.6365/unit from Bt1 .549/unit in January to April 2023), as well as lower gas costs to Bt404/mmbtu ( -4% YoY, -16% QoQ); 2) larger electricity volume sold to EGAT by 7% QoQ on the full-quarter contribution of BGPM2R (SPP replacement; COD in March 2023); 3) larger steam sales volume to IU of 218k tons (+13% YoY, +12% QoQ), offsetting the lower steam price.Meanwhile, the depreciation of the USD is likely to have led to an FX loss of around Bt168mn in the quarter, with the net impact cushioned by effective management of financial activities, resulting in lower finance costs to a similar extent.

B.grimm Power (Bgrim) - Earnings Improvement to Continue in 2Q23E

B Grimm Power

B.grimm Power (Bgrim) - Earnings Improvement to Continue in 2Q23E