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

Srisawad Finance Public Company Limited / Equity Bottom-Up

Srisawad Finance Public Company Limited offers financial services. The Company engages in various kinds of investments for public such as deposit receipts and bills of exchange, provides commercial loan facilities, and invests in securities. Srisawad Finance serves individuals, corporate entities, financial institutes, and associations in Thailand.

Srisawad Finance Public Company Limited (BFIT TB)

<ul><li>We maintain a Buy rating, with a fair value of Bt46.07.</li><li>Our valuation metrics suggest strength in all dimensions, including the long-term earnings growth, with an expected CAGR of 14% in 2024-26E. In addition, the tactical downside risk is limited.</li><li>SAWAD’s 1Q24 net profit was just 4% lower than our expectation at Bt1,261mn, growing 5.1% YoY but -0.4% QoQ, with higher- than-expected expenses offset by a lower-than-expected provision.</li></ul>

We maintain a Buy rating, with a fair value of Bt46.07.Our valuation metrics suggest strength in all dimensions, including the long-term earnings growth, with an expected CAGR of 14% in 2024-26E. In addition, the tactical downside risk is limited.SAWAD’s 1Q24 net profit was just 4% lower than our expectation at Bt1,261mn, growing 5.1% YoY but -0.4% QoQ, with higher- than-expected expenses offset by a lower-than-expected provision.

Srisawad Corporation - Downbeat Earnings by 4%; Lower Provisions QoQ

Aapico Hitech Public Company Limited manufactures car assembly jigs and stamping dies used for manufacturing automobiles in assembly plants. The Company also manufactures OEM automotive parts and operates automobile dealership business.

<ul><li>Based on the current valuation metrics, our recommendation for AH faces potential downgrade risks, aligned with the revision of our earnings projection to account for the more pronounced deterioration in the 1Q24 GPM than initially anticipated.</li><li>AH reported a 1Q24 net profit of Bt319mn (-43% YoY, +132% QoQ), 8% lower than the market’s expectation due to a deeper- than-expected deterioration of the gross profit margin (GPM).</li><li>Excluding the FX impact, the core profit amounted to Bt301mn (-50% YoY and -28% QoQ).</li></ul>

Based on the current valuation metrics, our recommendation for AH faces potential downgrade risks, aligned with the revision of our earnings projection to account for the more pronounced deterioration in the 1Q24 GPM than initially anticipated.AH reported a 1Q24 net profit of Bt319mn (-43% YoY, +132% QoQ), 8% lower than the market’s expectation due to a deeper- than-expected deterioration of the gross profit margin (GPM).Excluding the FX impact, the core profit amounted to Bt301mn (-50% YoY and -28% QoQ).

Aapico Hitech - Sharp Fall in 1Q24 GPM Pressured Earnings

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 a Buy rating. Our valuation metrics suggest that the valuation is attractive in terms of the fundamentals and the tactical view.</li><li>Meanwhile, the earnings outlook is on an upcycle trend, driven by both organic growth (with the higher capacity of service rooms and growing number of physicians) and inorganic growth</li><li>MASTER's 1Q24 net profit came out in line with our forecast at Bt106mn, up 49% YoY thanks to better cost management and the realization of shared profit from associates.</li></ul>

We maintain a Buy rating. Our valuation metrics suggest that the valuation is attractive in terms of the fundamentals and the tactical view.Meanwhile, the earnings outlook is on an upcycle trend, driven by both organic growth (with the higher capacity of service rooms and growing number of physicians) and inorganic growthMASTER's 1Q24 net profit came out in line with our forecast at Bt106mn, up 49% YoY thanks to better cost management and the realization of shared profit from associates.

Master Style - In-Line 1Q24 Earnings; Stronger Momentum in the Next Quarter

MK Restaurants Group PCL operates restaurants. The Company supplies traditional Thai food.

<ul><li>The 1Q24 earnings increased YoY due to a wider profit margin but decreased 32% QoQ owing to higher operating expenses.</li><li>M’s earnings came in 8% below our projection thanks to higher-than-expected operating expenses.</li><li>The 1Q24 core profit accounted for 20% of our 2024E earnings projection, which we maintain.</li></ul>

The 1Q24 earnings increased YoY due to a wider profit margin but decreased 32% QoQ owing to higher operating expenses.M’s earnings came in 8% below our projection thanks to higher-than-expected operating expenses.The 1Q24 core profit accounted for 20% of our 2024E earnings projection, which we maintain.

MK RESTAURANT GROUP - 1Q24 Earnings up 7% YoY but Down 32% QoQ, 8% Below the Estimate

Sansiri Public Company Limited develops real estate projects for sales and rentals.  Its projects include resort condominiums, residential and office buildings.  The Company also provides property and project management services.

<ul><li>We switch our rating for SIRI to a Buy call (from Neutral) as our latest valuation metrics suggest that the stock has resumed attractiveness in terms of the current valuation, while the tactical downside risk is also limited.</li><li>This overshadows the weak point of slow earnings growth.</li><li>SIRI reported a 1Q24 net profit of Bt1.32bn (-17% YoY, +1% QoQ), in line with the market’s expectation.</li></ul>

We switch our rating for SIRI to a Buy call (from Neutral) as our latest valuation metrics suggest that the stock has resumed attractiveness in terms of the current valuation, while the tactical downside risk is also limited.This overshadows the weak point of slow earnings growth.SIRI reported a 1Q24 net profit of Bt1.32bn (-17% YoY, +1% QoQ), in line with the market’s expectation.