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>The stock price has not factored in the strong 2Q24E earnings momentum as the marketing margin remains a challenging factor in 2H24E (amid the management of the Oil Fuel Fund Office and the likelihood of oil price hikes during the winter).</li><li>However, we view that the robust growth of oil sales volume and the non-oil businesses, supported by repeat service usage by PT Max Card cardholders across all systems (with approximately 21mn), will enable the company to withstand the challenging year in 2024E.</li><li>Hence, we have maintained our 2024-26E earnings forecasts (2Y EPS growth expected at a 10% CAGR).</li></ul>

The stock price has not factored in the strong 2Q24E earnings momentum as the marketing margin remains a challenging factor in 2H24E (amid the management of the Oil Fuel Fund Office and the likelihood of oil price hikes during the winter).However, we view that the robust growth of oil sales volume and the non-oil businesses, supported by repeat service usage by PT Max Card cardholders across all systems (with approximately 21mn), will enable the company to withstand the challenging year in 2024E.Hence, we have maintained our 2024-26E earnings forecasts (2Y EPS growth expected at a 10% CAGR).

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