Head of Research, Krungthai XSpring

Waraporn Wiboonkanarak

Head of Research

A full service Thai brokerage

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.

Equity Bottom-Up

GFPT Public Company Limited / Equity Bottom-Up

GFPT Public Company Limited produces frozen chicken parts and distributes its products under GFPT, Common Food, and Nichirei Core.  The Company sells its products to domestic and export markets.

<ul><li>The best profits for this year have already occurred in 2Q-3Q24. Recently, domestic chicken prices have softened, and the chicken export business is entering its low season in 4Q-1Q.</li><li>Therefore, no short-term catalysts are expected in the next 3-6 months.</li><li>KTX maintains a Neutral rating (FV= Bt13.25), based on a required return of 11%. </li></ul>

The best profits for this year have already occurred in 2Q-3Q24. Recently, domestic chicken prices have softened, and the chicken export business is entering its low season in 4Q-1Q.Therefore, no short-term catalysts are expected in the next 3-6 months.KTX maintains a Neutral rating (FV= Bt13.25), based on a required return of 11%. 

GFPT - Expect 3Q24E Core Profit Growth of 74% YoY

Master Style Public Company Limited, doing business as Masterpiece Hospital, operates a surgical hospital. The Company offers eye surgery, rhinoplasty, vaser liposuction, facial surgery, skin and laser treatment, hair transplant, and other healthcare services. Masterpiece Hospital serves patients in Thailand.

<ul><li>We maintain our Buy call for MASTER with the fair value unchanged at Bt58.50.</li><li>The company remains attractive from a fundamental valuation perspective, with the stock price implying 25% upside to the fair value.</li><li>The long-term performance outlook remains strong, with average EPS growth projected at a CAGR of 12% over the next three years.</li></ul>

We maintain our Buy call for MASTER with the fair value unchanged at Bt58.50.The company remains attractive from a fundamental valuation perspective, with the stock price implying 25% upside to the fair value.The long-term performance outlook remains strong, with average EPS growth projected at a CAGR of 12% over the next three years.

Master Style - 3Q24E Earnings Growth on Seasonality…moving to SET

Kiatnakin Bank Public Company Limited provides commercial banking services including commercial, developmental, consumer, hire-purchase, and mortgage financing to its customers in Thailand. The Company also provides securities brokerage and investment advisory services.

<ul><li>We maintain a Neutral rating with a new fair value (12M FV) of Bt52.00 (from Bt47.00 previously), based on the earnings yield method with a required return of 12%.</li><li>The valuation metrics indicate that the short-term stock price is fully valued, largely reflecting the profit recovery, while the tactical risk remains neutral.</li><li>The recovery in asset quality and the low base in 2024E are expected to support net profit growth to achieve a CAGR of 17% in 2025-26E.</li></ul>

We maintain a Neutral rating with a new fair value (12M FV) of Bt52.00 (from Bt47.00 previously), based on the earnings yield method with a required return of 12%.The valuation metrics indicate that the short-term stock price is fully valued, largely reflecting the profit recovery, while the tactical risk remains neutral.The recovery in asset quality and the low base in 2024E are expected to support net profit growth to achieve a CAGR of 17% in 2025-26E.

Kiatnakin Phatra Bank - Upward Earnings Revision; Lower-Than-Expected Provisions

Srinanaporn Marketing Public Company Limited / Equity Bottom-Up

Srinanaporn Marketing Public Company Limited operates as a food manufacturing company. The Company offers snack such as jelly, fruit juice, fish, squid, herb drinks. Srinanaporn Marketing serves customers worldwide.

Srinanaporn Marketing Public Company Limited (SNNP TB)

Srinanaporn Marketing Public Company Limited

<ul><li>We have revised down our earnings estimates for 2024-26E by an average of 8% per year, following a reduction in the sales forecasts by 10% per year.</li><li>This adjustment reflects the lower- than-expected foreign sales, particularly in the Vietnamese market.</li><li>As a result, the revised forecasts call for sales and profit growth at a 6% and 9% CAGR, respectively, over the next three years.</li></ul>

We have revised down our earnings estimates for 2024-26E by an average of 8% per year, following a reduction in the sales forecasts by 10% per year.This adjustment reflects the lower- than-expected foreign sales, particularly in the Vietnamese market.As a result, the revised forecasts call for sales and profit growth at a 6% and 9% CAGR, respectively, over the next three years.

Srinanaporn Marketing - 3Q24E Growth of 5% YoY

Home Product Center Public Company Limited is a retailer of building materials and home improvement products.

<ul><li>We expect the 3Q24E profit to decline YoY and QoQ due to weak same-store-sales growth (SSSG), which, although showing signs of improvement, is projected to decline for the full year.</li><li>This led us to revise down our earnings estimates for 2024-26E by an average of 11% per year.</li><li>The valuation metrics suggest a sell recommendation based on the current fundamentals, as the stock price exceeds its fair value.</li></ul>

We expect the 3Q24E profit to decline YoY and QoQ due to weak same-store-sales growth (SSSG), which, although showing signs of improvement, is projected to decline for the full year.This led us to revise down our earnings estimates for 2024-26E by an average of 11% per year.The valuation metrics suggest a sell recommendation based on the current fundamentals, as the stock price exceeds its fair value.

Home Product Center - 3Q24E Earnings Expected to Fall YoY and QoQ