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

Thematic (Sector/Industry)

Thailand Energy / Thematic (Sector/Industry)

<ul><li>We maintain a neutral view on the possibility of increasing the retail diesel price ceiling within the range of Bt1-2/liter to Bt31-32/liter due to the negative financial position of the Oil Fuel Fund, which stands at nearly -Bt100bn, and the need for excise tax collection by the Ministry of Finance to meet the target.</li><li>While an upward adjustment to the retail diesel price ceiling could yield short-term benefits for oil retailers in the form of one-time stock gains, challenges persist for marketing margins, including i) the incremental costs associated with the Euro 5 standard for refined oil products; and ii) the management efficiency of the Oil Fuel Fund.</li><li>Therefore, we maintain our conservative view on marketing margins in 2024E. For the downstream sector, we prefer refinery operators to oil retailers, with TOP as the top pick (Outperform; FV: Bt62.4). </li></ul>

We maintain a neutral view on the possibility of increasing the retail diesel price ceiling within the range of Bt1-2/liter to Bt31-32/liter due to the negative financial position of the Oil Fuel Fund, which stands at nearly -Bt100bn, and the need for excise tax collection by the Ministry of Finance to meet the target.While an upward adjustment to the retail diesel price ceiling could yield short-term benefits for oil retailers in the form of one-time stock gains, challenges persist for marketing margins, including i) the incremental costs associated with the Euro 5 standard for refined oil products; and ii) the management efficiency of the Oil Fuel Fund.Therefore, we maintain our conservative view on marketing margins in 2024E. For the downstream sector, we prefer refinery operators to oil retailers, with TOP as the top pick (Outperform; FV: Bt62.4). 

Energy (Oil Retailers) - Scenarios for a Diesel Price Lift