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

Star Petroleum Refining / Equity Bottom-Up

<ul><li>We expect the 3Q24E performance to turn to a loss (but we maintain our 2024E net profit forecast), with refining margins to be lower YoY and a limited recovery in 2H24E.</li><li>These factors have largely been priced in, aligning with the limited downside risk from a tactical view.</li><li>However, given the restricted upside gain of 4.8% and the moderate profit growth outlook for 2025-26E of around a 6% CAGR, we have downgraded our rating to Neutral (from Outperform), with a 12M FV of Bt7.18 (from Bt7.26 previously), based on the earnings yield method with a required return of 12.7%.</li></ul>

We expect the 3Q24E performance to turn to a loss (but we maintain our 2024E net profit forecast), with refining margins to be lower YoY and a limited recovery in 2H24E.These factors have largely been priced in, aligning with the limited downside risk from a tactical view.However, given the restricted upside gain of 4.8% and the moderate profit growth outlook for 2025-26E of around a 6% CAGR, we have downgraded our rating to Neutral (from Outperform), with a 12M FV of Bt7.18 (from Bt7.26 previously), based on the earnings yield method with a required return of 12.7%.

Star Petroleum Refining - 3Q24E Earnings to Turn to a Loss Due to Stock Losses and LCM