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

<ul><li>MINT reported a 2Q24 core profit of Bt3.2bn (+8% YoY and a turnaround from the loss of Bt352mn in 1Q24), slightly below our projection by 6% due to a narrower-than-expected GPM from hotels.</li><li>We anticipate an improvement in 2H24E core profit, driven by the high season in Europe and the beginning of the peak tourism season in Thailand in 4Q24E.</li><li>We project two-year earnings growth (2024-26E) at a CAGR of +11%. </li></ul>

MINT reported a 2Q24 core profit of Bt3.2bn (+8% YoY and a turnaround from the loss of Bt352mn in 1Q24), slightly below our projection by 6% due to a narrower-than-expected GPM from hotels.We anticipate an improvement in 2H24E core profit, driven by the high season in Europe and the beginning of the peak tourism season in Thailand in 4Q24E.We project two-year earnings growth (2024-26E) at a CAGR of +11%. 

Minor International - In-Line 2Q24 Core Profit

<ul><li>We initiate our coverage on MINT with an Outperform rating and a 12-month FV of Bt39.25, based on the 12M earnings yield of 3.6%.</li><li>Our valuation metrics indicate significant upside of +33%, with core EPS growth of +11% expected during 2024-26E as RevPAR should surpass pre-COVID levels.</li><li>However, the tactical view is neutral.</li></ul>

We initiate our coverage on MINT with an Outperform rating and a 12-month FV of Bt39.25, based on the 12M earnings yield of 3.6%.Our valuation metrics indicate significant upside of +33%, with core EPS growth of +11% expected during 2024-26E as RevPAR should surpass pre-COVID levels.However, the tactical view is neutral.

Minor International - Entering the High Season in 2-3Q24E

Thematic (Sector/Industry)

<ul><li>Technically, the SET Index is expected to move lower, with the support at 1,391/1,385 points (75-day EMA/50-day EMA) and the resistance at 1,410/1,416 points.</li><li>For the overall picture, the index is still in an uptrend pattern, testing the upchannel resistance at around 1,348-1,432 points.</li><li>In the short term, the index is beginning to show signs of a correction after rising sharply by nearly 40 points in the previous three trading days.</li></ul>

Technically, the SET Index is expected to move lower, with the support at 1,391/1,385 points (75-day EMA/50-day EMA) and the resistance at 1,410/1,416 points.For the overall picture, the index is still in an uptrend pattern, testing the upchannel resistance at around 1,348-1,432 points.In the short term, the index is beginning to show signs of a correction after rising sharply by nearly 40 points in the previous three trading days.

<ul><li>Greater clarity after the general election should ease worries over a possible coup and a delay in the formation of a coalition government, which we expect to consist of three parties, i.e., the Pheu Thai Party, the Palang Pracharath Party and the Bhumjaithai Party, in our base-case scenario; this would reduce the risk premium of the SET Index, pushing it up to our target of 1,607 points.</li><li>Historical data from the five most recent elections shows that the SET increased by an average of +3.47% in the month after they were held; and in the week before and after the general elections took place, the index rose by 1.87% and 3.81%, respectively.</li><li>The biggest gainers were the finance, property development and ICT sectors. We thus recommend speculating on SIRI, SC, SCB, KBANK, CPALL, INTUCH, ADVANC and MINT.</li></ul>

Greater clarity after the general election should ease worries over a possible coup and a delay in the formation of a coalition government, which we expect to consist of three parties, i.e., the Pheu Thai Party, the Palang Pracharath Party and the Bhumjaithai Party, in our base-case scenario; this would reduce the risk premium of the SET Index, pushing it up to our target of 1,607 points.Historical data from the five most recent elections shows that the SET increased by an average of +3.47% in the month after they were held; and in the week before and after the general elections took place, the index rose by 1.87% and 3.81%, respectively.The biggest gainers were the finance, property development and ICT sectors. We thus recommend speculating on SIRI, SC, SCB, KBANK, CPALL, INTUCH, ADVANC and MINT.

Special Report: Election Rally (History to Repeat Itself)

Thai Equity - Bottom-up - Equities, Pi Securities PCL, Thailand

Pi Research

Thai Equity - Bottom-up - Equities

Leading, full-service investment firm in Thailand

Pi Securities PCL, Thailand

Pi Securities is a well known securities company with 40 years experience in the industry, serving more than 60,000 clients. We offer one - stop service providing full range of financial products and services including extensive Brokerage, Proprietary Trading (Equities and Bonds), Advisory Services, Structured Products.

Moreover, our new research team tailored for institutional clients to focus on mid to small cap of Thai equities and trading strategies. Our services offered to our premium clients also include arrangement of company or site visits to with the managements of Thai listed companies.

Note: Effective on 1 March 2022, Country Group Securities PCL changed its name to Pi Securities

<ul>
<li>MINT report all-time high level of net profit at 4.6bn. However, stripping out extra items, core profit would be at Bt2.0bn (+66%QoQ vs. Bt2.4bn loss in 3Q21) </li>
<li>Two consecutive quarters of strong net profit   The company booked core profit at Bt2.0bn (+66%QoQ,turnaround from Bt2.4bn loss in 3Q21)supported by all-time high level of hotel revenue at Bt26bn</li>
<li>Food revenue climbed to all-time high level at Bt7.0bn (+16%QoQ +48%YoY) following strong SSSG at 16.6% compared with -7.2% and 7.8% in 3Q21 and 2Q22 respectively</li>
</ul>


MINT report all-time high level of net profit at 4.6bn. However, stripping out extra items, core profit would be at Bt2.0bn (+66%QoQ vs. Bt2.4bn loss in 3Q21) 
Two consecutive quarters of strong net profit   The company booked core profit at Bt2.0bn (+66%QoQ,turnaround from Bt2.4bn loss in 3Q21)supported by all-time high level of hotel revenue at Bt26bn
Food revenue climbed to all-time high level at Bt7.0bn (+16%QoQ +48%YoY) following strong SSSG at 16.6% compared with -7.2% and 7.8% in 3Q21 and 2Q22 respectively


MINT : 3Q22 Earnings Beat Our and Consensus Estimates

Thailand

Minor International PCL is a global company focused on three primary businesses including restaurants, hotels and lifestyle brands distribution.

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Minor International (MINT TB)

Minor International - In-Line 2Q24 Core Profit

We anticipate an improvement in 2H24E core profit, driven by the high season in Europe and the beginning of the peak tourism season in Thailand in...

Krungthai XSpring

Minor International - Entering the High Season in 2-3Q24E

We initiate our coverage on MINT with an Outperform rating and a 12-month FV of Bt39.25, based on the 12M earnings yield of 3.6%.

Krungthai XSpring

KTX Zoom - APRIL 17, 2024

Technically, the SET Index is expected to move lower, with the support at 1,391/1,385 points (75-day EMA/50-day EMA) and the resistance at 1,410...

Krungthai XSpring

Special Report: Election Rally (History to Repeat Itself)

The biggest gainers were the finance, property development and ICT sectors. We thus recommend speculating on SIRI, SC, SCB, KBANK, CPALL, INTUCH,...

Krungthai XSpring

MINT : 3Q22 Earnings Beat Our and Consensus Estimates

MINT report all-time high level of net profit at 4.6bn. However, stripping out extra items, core profit would be at Bt2.0bn (+66%QoQ vs. Bt2.4bn...

Pi Securities PCL, Thailand

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