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)

Global Power Synergy Company Ltd (GPSC TB)

<ul><li>The risk regarding the government’s policy to subsidize electricity bills through the reduction of Ft will have a direct impact on SPP operators’ earnings.</li><li>In addition, the upward revision to the Thai 10Y bond yield estimate in the house view (to 3.95% in2024E) will have a negative effect on the power sector in terms of debt leverage, as a higher return will be required to offset the elevated funding costs in the future.</li><li>Taking these factors into account, we have revised down our earnings projections for BGRIM and GPSC, as well as their fair values. </li></ul>

The risk regarding the government’s policy to subsidize electricity bills through the reduction of Ft will have a direct impact on SPP operators’ earnings.In addition, the upward revision to the Thai 10Y bond yield estimate in the house view (to 3.95% in2024E) will have a negative effect on the power sector in terms of debt leverage, as a higher return will be required to offset the elevated funding costs in the future.Taking these factors into account, we have revised down our earnings projections for BGRIM and GPSC, as well as their fair values. 

Industry Update – Energy (Power Sector) - October 27, 2023