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.

Thematic (Sector/Industry)

<ul><li>The Thai swine industry is anticipated to face continued challenges this year, though not as severe as the difficulties encountered in 2023.</li><li>During that period, major operators experienced losses due to rising costs and declining prices, exacerbated by an influx of illegal swine supply and further compounded by sluggish consumption.</li><li>In 1H24E, domestic swine supply is projected to stabilize, with excess supply gradually diminishing.</li></ul>

The Thai swine industry is anticipated to face continued challenges this year, though not as severe as the difficulties encountered in 2023.During that period, major operators experienced losses due to rising costs and declining prices, exacerbated by an influx of illegal swine supply and further compounded by sluggish consumption.In 1H24E, domestic swine supply is projected to stabilize, with excess supply gradually diminishing.

Meat Sector – Thai Swine Prices to Recover in 2H24E

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

Equity Bottom-Up

<ul>
<li>We keep our BUY rating with a TP of Bt21.4, derived from 14xPE’23E. We recommend increasing position in ASIAN on expected brighter 2H22 outlook and onwards, supported by capacity expansion</li>
<li>Margin resilience was key to decent 2Q22 results ASIAN’s 2Q22 earnings posted at Bt264m, dropped 10%YoY but rose 7%QoQ, which was in-line with our forecast. Behind the QoQ growth </li>
<li>Brighter prospects in 2H22 Looking ahead,we see 2H22 earnings momentum on highway to growth,backed by capacity expansion in the pet food unit,which increased to 42,000t/pa (+17%QoQ) in the late 1H22</li>
</ul>


We keep our BUY rating with a TP of Bt21.4, derived from 14xPE’23E. We recommend increasing position in ASIAN on expected brighter 2H22 outlook and onwards, supported by capacity expansion
Margin resilience was key to decent 2Q22 results ASIAN’s 2Q22 earnings posted at Bt264m, dropped 10%YoY but rose 7%QoQ, which was in-line with our forecast. Behind the QoQ growth 
Brighter prospects in 2H22 Looking ahead,we see 2H22 earnings momentum on highway to growth,backed by capacity expansion in the pet food unit,which increased to 42,000t/pa (+17%QoQ) in the late 1H22


<ul>
<li>We maintain our BUY rating but roll over TP to 14xPE’23E(+0.5SD of its 5-yrs trading mean)at Bt21.4 or -7% from previous TP.We recommend to accumulate ASIAN on expected positive 2Q22 </li>
<li>Expect 2Q22 result to recover QoQ We expect 2Q22 core profit at Bt259m (-12%YoY, +5%QoQ). Despite expected 3%QoQ sales growth to Bt2.9bn,the QoQ growth in 2Q22 earnings will be driven </li>
<li>Profit momentum poised to further climb in 2H22 We expect 2H22 core profit to stride a firmer upward path on the back of capacity expansion effect.The pet food segment’s production </li>
</ul>


We maintain our BUY rating but roll over TP to 14xPE’23E(+0.5SD of its 5-yrs trading mean)at Bt21.4 or -7% from previous TP.We recommend to accumulate ASIAN on expected positive 2Q22 
Expect 2Q22 result to recover QoQ We expect 2Q22 core profit at Bt259m (-12%YoY, +5%QoQ). Despite expected 3%QoQ sales growth to Bt2.9bn,the QoQ growth in 2Q22 earnings will be driven 
Profit momentum poised to further climb in 2H22 We expect 2H22 core profit to stride a firmer upward path on the back of capacity expansion effect.The pet food segment’s production 


<ul>
<li>Maintain BUY rating with TP of B23.00 derived from 16xPE’22E, which is close to +1SD of 5-years trading average. Our rating reflects strong pet food growth outlook, attractive 3.8% yield</li>
<li>We foresee earnings momentum to improve QoQ in 2Q22, supported by better pet food business unit from new capacity, and further strengthen by Baht downtrend.</li>
<li>In our view, the new pet food capacity should gather pace in 2H22, upon better demand in light of favorable macro dynamics. Moreover</li>
</ul>


Maintain BUY rating with TP of B23.00 derived from 16xPE’22E, which is close to +1SD of 5-years trading average. Our rating reflects strong pet food growth outlook, attractive 3.8% yield
We foresee earnings momentum to improve QoQ in 2Q22, supported by better pet food business unit from new capacity, and further strengthen by Baht downtrend.
In our view, the new pet food capacity should gather pace in 2H22, upon better demand in light of favorable macro dynamics. Moreover


ASIAN: Pet Food Unit Continue to Be Key Growth Driver

<ul>
<li>Maintain BUY rating with a TP of B23.00 based on 16xPE’22E, which is close to +1SD of its five-years average trading.Our rating is premised on positive pet food growth outlook</li>
<li>We expect 1Q22E earnings to come in at Bt250m (+16%YoY,-6%QoQ), soften QoQ on the back of weak margin outlook from surging raw material costs. </li>
<li>We foresee earnings visibility to pick up in 2Q22 onwards, driven by stronger pet food revenue thanks to new capacity and margin improvement given easing cost pressures.</li>
</ul>


Maintain BUY rating with a TP of B23.00 based on 16xPE’22E, which is close to +1SD of its five-years average trading.Our rating is premised on positive pet food growth outlook
We expect 1Q22E earnings to come in at Bt250m (+16%YoY,-6%QoQ), soften QoQ on the back of weak margin outlook from surging raw material costs. 
We foresee earnings visibility to pick up in 2Q22 onwards, driven by stronger pet food revenue thanks to new capacity and margin improvement given easing cost pressures.


ASIAN: Expect 1Q22 Earnings to Modestly Drop QoQ

Thailand

Asian Sea Corporation Public Company Limited manufactures, distributes, and exports processed frozen seafood and pet food, serving customers globally. The company offers a range of products including frozen shrimp, fish, and various wet and dry pet food products. It also provides cold storage services. Headquartered in Samut Sakhon, Thailand, the company was founded in 1964.

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Asian Sea (ASIAN TB)

Meat Sector – Thai Swine Prices to Recover in 2H24E

The Thai swine industry is anticipated to face continued challenges this year, though not as severe as the difficulties encountered in 2023.

Krungthai XSpring

ASIAN : In-Line 2Q22 Result

We keep our BUY rating with a TP of Bt21.4, derived from 14xPE’23E. We recommend increasing position in ASIAN on expected brighter 2H22 outlook and...

Pi Securities PCL, Thailand

ASIAN : Picking up Steam in 2Q22

We maintain our BUY rating but roll over TP to 14xPE’23E (+0.5SD of its 5-yrs trading mean) at Bt21.4 or -7% from previous TP. We recommend to...

Pi Securities PCL, Thailand

ASIAN: Pet Food Unit Continue to Be Key Growth Driver

Maintain BUY rating with TP of B23.00 derived from 16xPE’22E,which is close to +1SD of 5-years trading average. Our rating reflects strong pet food...

Pi Securities PCL, Thailand

ASIAN: Expect 1Q22 Earnings to Modestly Drop QoQ

Maintain BUY rating with a TP of B23.00 based on 16xPE’22E, which is close to +1SD of its five-years average trading. Our rating is premised on...

Pi Securities PCL, Thailand

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