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.

Cross Asset Strategy

<ul><li>We recommend selling KKP (with the return since it was added to the portfolio at 0.7%) after we added it for just one day, as the stock has fallen out of our top rankings.</li><li>However, long-term investors may consider holding it and stopping losses at Bt64.25.</li><li>We have added EA, as the stock is expected to benefit from the potential growth in the EV industry after it acquired a 23.63% share in BYD, which provides electric bus services.</li></ul>

We recommend selling KKP (with the return since it was added to the portfolio at 0.7%) after we added it for just one day, as the stock has fallen out of our top rankings.However, long-term investors may consider holding it and stopping losses at Bt64.25.We have added EA, as the stock is expected to benefit from the potential growth in the EV industry after it acquired a 23.63% share in BYD, which provides electric bus services.

Big Cap Tactical Picks - Highlights of the Day

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

Asset World Corporation / Equity Bottom-Up

<ul>
<li>Expect EBITDA-break-even period for hospitality business by the second half of 2022E when the foreign tourists arrive at a pace of at least 400k people per month. Meanwhile</li>
<li>Long-Term growth prospect remain intact given number of hotel room expansion at 15%CAGR in 2023-26E.</li>
<li>Recent rally in stock price has priced in positive sentiment toward overall Thai tourism sector after restriction measure has eased.However,faster-than-expected recovery in foreign tourist inbound remain an upside risk for22-23E</li>
</ul>


Expect EBITDA-break-even period for hospitality business by the second half of 2022E when the foreign tourists arrive at a pace of at least 400k people per month. Meanwhile
Long-Term growth prospect remain intact given number of hotel room expansion at 15%CAGR in 2023-26E.
Recent rally in stock price has priced in positive sentiment toward overall Thai tourism sector after restriction measure has eased.However,faster-than-expected recovery in foreign tourist inbound remain an upside risk for22-23E


AWC: Long-Term Earnings Growth Profile Remains Intact

Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Thematic (Sector/Industry)

<h2>Singapore</h2><p>SREITs results in a glance (see detailed spreadsheet and calendar attached)</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/235/060/original/image_86658513151634177122386.png?1634177126" class="editor-image img-responsive" data-smartkarma-image-id="235060"></figure><h3><a href="https://www.smartkarma.com/entities/aims-amp-capital-industrial" target="_blank" data-smartkarma-citation="entities:933" rel="noopener">AIMS APAC REIT (AAREIT SP)</a> 2Q22 DPU +18.8% YoY; Strong operational metrics with additional inorganic growth booster</h3><ul><li>1H22 revenue and NPI rose by 13.0% and 19.4% YoY, respectively, to S$65.2m (47.2% BB est.) and S$47.7m (55.5% BB est.), mainly due to acquisition of 7 Bulim Street (acquired in Oct20) and higher rental contribution from 7 Bulim Street, 20 Gul Way, 8 &amp; 10 Pandan Crescent and 541 Yishun Industrial Park A (new master tenant commenced in Jan21)</li><li>1H22 DPU surged 18.8% YoY to S$4.75c (50.0% BB est.). 2Q22 DPU also surged 25.0% YoY and 11.1% QoQ to S$2.50c</li></ul>

SingaporeSREITs results in a glance (see detailed spreadsheet and calendar attached)AIMS APAC REIT (AAREIT SP) 2Q22 DPU +18.8% YoY; Strong operational metrics with additional inorganic growth booster1H22 revenue and NPI rose by 13.0% and 19.4% YoY, respectively, to S$65.2m (47.2% BB est.) and S$47.7m (55.5% BB est.), mainly due to acquisition of 7 Bulim Street (acquired in Oct20) and higher rental contribution from 7 Bulim Street, 20 Gul Way, 8 &amp; 10 Pandan Crescent and 541 Yishun Industrial Park A (new master tenant commenced in Jan21)1H22 DPU surged 18.8% YoY to S$4.75c (50.0% BB est.). 2Q22 DPU also surged 25.0% YoY and 11.1% QoQ to S$2.50c

<p><strong>The management expect to see performance for hospitality business to pick up from the 2H21 trough in 1Q22. Meanwhile, we anticipate EBITDA breakeven period for the hotel unit to take place in mid 2Q22 when majority of population have vaccinated.</strong></p><div>• 2Q21 loss (excluding gain from asset revaluation) was at Bt758m (v.s. Bt594m loss in 1Q21, Bt729m profit in 2Q20)</div><div></div><div>• Expect the company to incur net loss in 3Q21 and 4Q21 with a higher extent than 2H20 due to impact from 3rd wave of COVID-19, which trim down occupancy for hospitality business down to below 10% (vs. 17% in 1H21).</div><div></div><div>• Trim down net loss forecast in 2021E further to Bt2.2bn</div><div></div><div><strong>We maintain HOLD rating for AWC with a new target price after EPS downward revision at Bt4.10 (Previous TP: Bt4.30), derived from DCF, which implies 51xPE’24E. HOLD rating reflect negative outlook towards earnings recovery in 2H21. However, faster-than-expected recovery in tourist inbound and vaccine rollout remain an upside risk for 22-23E earnings upward revision.</strong></div>

The management expect to see performance for hospitality business to pick up from the 2H21 trough in 1Q22. Meanwhile, we anticipate EBITDA breakeven period for the hotel unit to take place in mid 2Q22 when majority of population have vaccinated.• 2Q21 loss (excluding gain from asset revaluation) was at Bt758m (v.s. Bt594m loss in 1Q21, Bt729m profit in 2Q20)• Expect the company to incur net loss in 3Q21 and 4Q21 with a higher extent than 2H20 due to impact from 3rd wave of COVID-19, which trim down occupancy for hospitality business down to below 10% (vs. 17% in 1H21).• Trim down net loss forecast in 2021E further to Bt2.2bnWe maintain HOLD rating for AWC with a new target price after EPS downward revision at Bt4.10 (Previous TP: Bt4.30), derived from DCF, which implies 51xPE’24E. HOLD rating reflect negative outlook towards earnings recovery in 2H21. However, faster-than-expected recovery in tourist inbound and vaccine rollout remain an upside risk for 22-23E earnings upward revision.

AWC: Clearer Picture for Hotel Business Is Expected to Be Seen in Early 2022

<h2>Singapore</h2><h3><a href="https://www.smartkarma.com/entities/capitaland-ltd" target="_blank" data-smartkarma-citation="entities:55" rel="noopener">Capitaland (CAPL SP)</a> restructuring plan is deemed 'fair and reasonable'</h3><ul><li>CAPL proposed to split its business into a privately held real estate development arm, CapitaLand Investment (CLI), which would become the largest real estate investment manager (REIM) on the Singapore bourse, with pro forma real estate AUM of ~S$115bn as at 31De20. Under the planned scheme, shareholders would effectively own a direct stake in a company with lower leverage, as the pro forma net debt-to-equity ratio of 0.56 times for CLI, against CAPL’s net debt to equity of 0.68 times as at 31Dec20</li><li>Evercore Asia, the IFA, has called the value of the deal fair and reasonable from a financial point of view, as of the latest practicable date and shareholders can also choose to sell their shares on the open market, if they can get a higher price</li><li>The implied consideration represents a premium over the volume-weighted average price up to date of the restructuring announcement. The implied value in the deal includes both a consideration of S$4.102/share and the FY20 dividend for those who held shares by 4May21. CAPL will hold an EGM and a scheme meeting on 10Aug21 for shareholders to decide on the planned transaction.</li></ul>

SingaporeCapitaland (CAPL SP) restructuring plan is deemed 'fair and reasonable'CAPL proposed to split its business into a privately held real estate development arm, CapitaLand Investment (CLI), which would become the largest real estate investment manager (REIM) on the Singapore bourse, with pro forma real estate AUM of ~S$115bn as at 31De20. Under the planned scheme, shareholders would effectively own a direct stake in a company with lower leverage, as the pro forma net debt-to-equity ratio of 0.56 times for CLI, against CAPL’s net debt to equity of 0.68 times as at 31Dec20Evercore Asia, the IFA, has called the value of the deal fair and reasonable from a financial point of view, as of the latest practicable date and shareholders can also choose to sell their shares on the open market, if they can get a higher priceThe implied consideration represents a premium over the volume-weighted average price up to date of the restructuring announcement. The implied value in the deal includes both a consideration of S$4.102/share and the FY20 dividend for those who held shares by 4May21. CAPL will hold an EGM and a scheme meeting on 10Aug21 for shareholders to decide on the planned transaction.

ASEAN Builder's Scoop (19Jul21) - CAPL Restructuring Plan Fair and Reasonable

Thailand

Asset World Corp Public Company Limited focuses on real estate development and investment services. The Company offers property management. Asset World Corp serves customers in Thailand.

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Asset World Corporation (AWC TB)

Big Cap Tactical Picks - Highlights of the Day

We recommend selling KKP (with the return since it was added to the portfolio at 0.7%) after we added it for just one day, as the stock has fallen...

Krungthai XSpring

AWC: Long-Term Earnings Growth Profile Remains Intact

Expect EBITDA-break-even period for hospitality business by the second half of 2022Ewhen the foreign tourists arrive at a pace of at least 400k...

Pi Securities PCL, Thailand

ASEAN Builder's Scoop (13Oct21)

AAREIT strong operational metrics with inorganic booster; DASIN completes manager sale; Ascott record signing in VN; AWC repositioning 3 mega projects

SCCM Asia Research

AWC: Clearer Picture for Hotel Business Is Expected to Be Seen in Early 2022

The management expect to see performance for hospitality business to pick up from the 2H21 trough in 1Q22. Meanwhile, we anticipate EBITDA...

Pi Securities PCL, Thailand

ASEAN Builder's Scoop (19Jul21) - CAPL Restructuring Plan Fair and Reasonable

CAPL restructuring plan fair and reasonable; MPI restructures logistics biz; AWC to invest THB100bn in mixed-use developments; Indo extends tax...

SCCM Asia Research

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