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>We maintain our Underperform rating as the valuation metrics indicate that the stock’s valuation remains unattractive, with the share price approximately 11.7% above the new fair value.</li><li>Meanwhile, our tactical view is neutral.</li><li>The new 12M FWD fair value, assessed using the earnings yield method, has been lowered to Bt16.20 (previously Bt16.30) due to both a downward revision of the profit estimates and an increase in the required return, which is used as the discount rate, to 20.8% (previously 19.9%).</li></ul>

We maintain our Underperform rating as the valuation metrics indicate that the stock’s valuation remains unattractive, with the share price approximately 11.7% above the new fair value.Meanwhile, our tactical view is neutral.The new 12M FWD fair value, assessed using the earnings yield method, has been lowered to Bt16.20 (previously Bt16.30) due to both a downward revision of the profit estimates and an increase in the required return, which is used as the discount rate, to 20.8% (previously 19.9%).

Aapico Hitech - Business Expected to Strongly Recover in 2026E

<ul>
<li>We maintain an Underperform rating, as AH remains unattractive from a fundamental valuation perspective.</li>
<li>The stock has approximately 8% downside risk from the fair value (FV) of Bt16.30, based on a required return of 19.9%.</li>
<li>In addition, the long-term growth outlook may be downgraded due to a sharper-than-expected decline in Thai auto production in 9M24.</li>
</ul>


We maintain an Underperform rating, as AH remains unattractive from a fundamental valuation perspective.
The stock has approximately 8% downside risk from the fair value (FV) of Bt16.30, based on a required return of 19.9%.
In addition, the long-term growth outlook may be downgraded due to a sharper-than-expected decline in Thai auto production in 9M24.


Aapico Hitech - 3Q24 Earnings Pressured by Weak Business in Thailand

<ul><li>We switch our rating to Underperform (from Neutral).</li><li>The valuation metrics suggest a more optimistic view on the earnings growth prospects (due to the low base in 2024E), but the valuation is unattractive both in terms of the fundamentals and the tactical view.</li><li>Our 12M forward fair value, based on the earnings yield method, has been revised down to Bt16.30 (vs. Bt23.60) due to downward revisions to our earnings estimates and an increase in the required return as the discount rate to 19.9% (from 19.5% previously).</li></ul>

We switch our rating to Underperform (from Neutral).The valuation metrics suggest a more optimistic view on the earnings growth prospects (due to the low base in 2024E), but the valuation is unattractive both in terms of the fundamentals and the tactical view.Our 12M forward fair value, based on the earnings yield method, has been revised down to Bt16.30 (vs. Bt23.60) due to downward revisions to our earnings estimates and an increase in the required return as the discount rate to 19.9% (from 19.5% previously).

Aapico Hitech - 2H24E Earnings to Accelerate, but Valuation Stretched

Research and consultancy, Tabbush Report

Daniel Tabbush

Research and consultancy

Tabbush Report

We provide research and consultancy on Asian banks. Our focus is on what we call “Asian bank research, without the noise.” We are interested in the most critical swing-factors for banks, the NPL and credit cycle, and where we believe there is a gap between perception and reality. We often focus on the less studied components of bank financial statements.  Our research is highly thematic, sometimes examining unlisted banks and companies as a window on mainstream banks. 

Being independent allows us to look at smaller banks, often overlooked by others. Analysis of BIS bank guidelines in the context of Asia, is also a focal point, while we also analyze global banks operating in the region. We use what we believe is the most comprehensive, reliable financials database, SNL Financial. S&P Capital IQ augments our database, with corporate data and CEIC, with economics. 

Asian bank research, without the noise.

<ul>
<li>Tong Yang Industry is now seeing record profit in FY23 and this appears to be in place to continue during FY24</li>
<li>The automobile and motorcycle parts manufacturing company is seeing strong growth in the US market</li>
<li>Electric vehicle parts R&amp;D is well underway and this should support continued growth in coming years</li>
</ul>


Tong Yang Industry is now seeing record profit in FY23 and this appears to be in place to continue during FY24
The automobile and motorcycle parts manufacturing company is seeing strong growth in the US market
Electric vehicle parts R&amp;D is well underway and this should support continued growth in coming years


Tong Yang Industry - Record Profit With Improving Financial Position

<ul><li>We switch to a Neutral rating (from Outperform).</li><li>Our valuation metrics suggest that the steady earnings growth outlook has already been priced in, while there is no catalyst from the tactical view.</li><li>The 12M forward fair value, based on the earnings yield method, has been revised down to Bt23.60 (vs. Bt34.14 previously), in tandem with the downward earnings revisions and a higher required rate of return of 19.5% (vs. 15.0% previously) following our new house view on the macroeconomic variables used for the beta projection.</li></ul>

We switch to a Neutral rating (from Outperform).Our valuation metrics suggest that the steady earnings growth outlook has already been priced in, while there is no catalyst from the tactical view.The 12M forward fair value, based on the earnings yield method, has been revised down to Bt23.60 (vs. Bt34.14 previously), in tandem with the downward earnings revisions and a higher required rate of return of 19.5% (vs. 15.0% previously) following our new house view on the macroeconomic variables used for the beta projection.

Aapico Hitech - A Challenging Year for AH

Thailand

AAPICO Hitech Public Company Limited is a global automotive parts manufacturer and supplier, producing metal forming, plastic, casting, forging, and machining parts for OEMs. The company also operates car dealerships and is involved in Internet of Things (IoT) connectivity and mobility solutions. Headquartered in Ayutthaya, Thailand, it was founded in 1996.

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AAPICO Hitech (AH TB)

Aapico Hitech - Business Expected to Strongly Recover in 2026E

We maintain our Underperform rating as the valuation metrics indicate that the stock’s valuation remains unattractive, with the share price...

Krungthai XSpring

Aapico Hitech - 3Q24 Earnings Pressured by Weak Business in Thailand

We maintain an Underperform rating, as AH remains unattractive from a fundamental valuation perspective. The stock has approximately 8% downside...

Krungthai XSpring

Aapico Hitech - 2H24E Earnings to Accelerate, but Valuation Stretched

We switch our rating to Underperform (from Neutral). The valuation metrics suggest a more optimistic view on the earnings growth prospects (due to...

Krungthai XSpring

Tong Yang Industry - Record Profit With Improving Financial Position

Strong 2Q24 results just out: NTD1.04bn vs NTD758m net profit. Continues to shows ongoing earnings strength, even after exceptional 1Q24.

Daniel Tabbush

Aapico Hitech - A Challenging Year for AH

Our valuation metrics suggest that the steady earnings growth outlook has already been priced in, while there is no catalyst from the tactical view.

Krungthai XSpring

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