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 initiate our coverage on COM7 with a Sell rating and a FY2024 fair value of Bt14.75, based on a required rate of return of 8.84%.</li><li>Although we expect the 2024E core earnings to recover to Bt3.1bn (EPS Bt1.29, +6% YoY), the company’s valuations are still unattractive compared to its growth potential going forward.</li><li>After a period of strong growth between FY2013-2023, the <span style="font-size: var(--content-font-size);">company now lacks a major S-curve amid a saturated Thai IT </span><span style="font-size: var(--content-font-size);">market.</span></li></ul>

We initiate our coverage on COM7 with a Sell rating and a FY2024 fair value of Bt14.75, based on a required rate of return of 8.84%.Although we expect the 2024E core earnings to recover to Bt3.1bn (EPS Bt1.29, +6% YoY), the company’s valuations are still unattractive compared to its growth potential going forward.After a period of strong growth between FY2013-2023, the company now lacks a major S-curve amid a saturated Thai IT market.

Com7 - Unattractive Valuation and Maturing Growth