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

Delta Electronics Thailand  / Equity Bottom-Up

<ul><li>We initiate our coverage on DELTA with a Neutral rating and a 12M fair value of Bt60.25, based on a required rate of return of 2.29%, as we view the current valuation to be unfavorable.</li><li>However, our model suggests that an upward rerating is possible in the medium term — our FY2025E and FY2026E fair values are Bt79.25 and Bt96.00, respectively.</li><li>We expect flat core profit growth YoY in FY2024E at Bt17bn, as the increase in sales will likely be offset by production ramp-up costs, which follows the patterns evident in DELTA’s last two factory openings in 2019 and 2021.</li></ul>

We initiate our coverage on DELTA with a Neutral rating and a 12M fair value of Bt60.25, based on a required rate of return of 2.29%, as we view the current valuation to be unfavorable.However, our model suggests that an upward rerating is possible in the medium term — our FY2025E and FY2026E fair values are Bt79.25 and Bt96.00, respectively.We expect flat core profit growth YoY in FY2024E at Bt17bn, as the increase in sales will likely be offset by production ramp-up costs, which follows the patterns evident in DELTA’s last two factory openings in 2019 and 2021.

Delta Electronics (Thailand) - Potential for Rerating of Valuation in FY2025E and FY2026E