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>Technically, we expect the SET Index to move sideways up, with the resistance at 1,409 points (75-day EMA/1,416 points) and the support at 1,390 points/1,387 points (25-day EMA).</li><li>The index is still moving in an upward direction, having continued to hit higher highs and higher lows for the fourth consecutive day and successfully breaching the 25-day and 50-day short-term moving averages.</li><li>The target is to test the previous resistance at 1,416 /1,438 points, respectively.</li></ul>

Technically, we expect the SET Index to move sideways up, with the resistance at 1,409 points (75-day EMA/1,416 points) and the support at 1,390 points/1,387 points (25-day EMA).The index is still moving in an upward direction, having continued to hit higher highs and higher lows for the fourth consecutive day and successfully breaching the 25-day and 50-day short-term moving averages.The target is to test the previous resistance at 1,416 /1,438 points, respectively.

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>The company report 3Q22 net profit at Bt1.0bn(+49%YoY +32%QoQ).However, stripping out extra gain from asset valuation, AWC would incurred loss from operation at Bt11m, the lowest loss in ten quarter</li>
<li>Solid improvement in 3Q22 profit backed by Bangkok-MICE hotels This impressive recovery supported by hotel business,which generated revenue at Bt1.8bn(+575%YoY +38%QoQ)as occupancy is assumed to touch 55%(vs. 43% in 2Q22)</li>
<li>Retail and Commercial businesses are still on its gradual recovery pace given a lower rent discount subsided to renters to around10%from 2019 level (15% in 2Q22). Revenue expanded slightly QoQ </li>
</ul>


The company report 3Q22 net profit at Bt1.0bn(+49%YoY +32%QoQ).However, stripping out extra gain from asset valuation, AWC would incurred loss from operation at Bt11m, the lowest loss in ten quarter
Solid improvement in 3Q22 profit backed by Bangkok-MICE hotels This impressive recovery supported by hotel business,which generated revenue at Bt1.8bn(+575%YoY +38%QoQ)as occupancy is assumed to touch 55%(vs. 43% in 2Q22)
Retail and Commercial businesses are still on its gradual recovery pace given a lower rent discount subsided to renters to around10%from 2019 level (15% in 2Q22). Revenue expanded slightly QoQ 


AWC : 3Q22 Core Profit Beat Our Estimate but Below Market Expectation

<ul>
<li>Expect the company’s core operation to turn profit in4Q22,supported by solid recovery in hotels’ RevPar and lower rent discount given to tenants of retail space. Surging demand from business travelling </li>
<li>Solid improvement in 3Q22 profit backed by Bangkok-MICE hotels We expectAWC to post 3Q22 net loss from core operation at Bt44m supported by hotel business,which should post revenue at Bt1.7bn</li>
<li>Retail and Commercial businesses are still on its gradual recovery pace given a lower rent discount subsided to renters to around 10% from 2019 level(15% in2Q22). Revenue should recover 15%YoY</li>
</ul>


Expect the company’s core operation to turn profit in4Q22,supported by solid recovery in hotels’ RevPar and lower rent discount given to tenants of retail space. Surging demand from business travelling 
Solid improvement in 3Q22 profit backed by Bangkok-MICE hotels We expectAWC to post 3Q22 net loss from core operation at Bt44m supported by hotel business,which should post revenue at Bt1.7bn
Retail and Commercial businesses are still on its gradual recovery pace given a lower rent discount subsided to renters to around 10% from 2019 level(15% in2Q22). Revenue should recover 15%YoY


AWC : Solid Long-Term Earnings Growth, but on Demanding Valuation

<ul>
<li>Maintain HOLD rating for AWC after rolled over target price to Bt5.40(Previous TP:4.50).We expect the company earnings in 2H22to grow strongly from the first half and low base last year</li>
<li>2Q22 core earnings show positive sign of recovery Report 2Q22 net profit at Bt776m.Stripping out extra gain from asset valuation, AWC would incur net loss of Bt382m, the least loss </li>
<li>Gross profit margin hit nine-quarter high at 40.2% as a result from an increase in revenue to the highest level in nine quarter at Bt2.0bn.SG&amp;A to sales ratio also trimmed </li>
</ul>


Maintain HOLD rating for AWC after rolled over target price to Bt5.40(Previous TP:4.50).We expect the company earnings in 2H22to grow strongly from the first half and low base last year
2Q22 core earnings show positive sign of recovery Report 2Q22 net profit at Bt776m.Stripping out extra gain from asset valuation, AWC would incur net loss of Bt382m, the least loss 
Gross profit margin hit nine-quarter high at 40.2% as a result from an increase in revenue to the highest level in nine quarter at Bt2.0bn.SG&amp;A to sales ratio also trimmed 


<ul><li>We suggest selling JMART after we recommended buying it yesterday because the stock has fallen out of our top rankings (with the return at +0.51%).</li><li>However, long-term investors may continue holding it, with the loss-stopping point at Bt48.00.</li><li>We add KKP to the portfolio, as the stock is likely to offer a YoY increase in the dividend payment for its1H22performance, which will be made in September, after it reported 1H22 earnings of Bt4,089mn, +45.1% YoY.</li></ul>

We suggest selling JMART after we recommended buying it yesterday because the stock has fallen out of our top rankings (with the return at +0.51%).However, long-term investors may continue holding it, with the loss-stopping point at Bt48.00.We add KKP to the portfolio, as the stock is likely to offer a YoY increase in the dividend payment for its1H22performance, which will be made in September, after it reported 1H22 earnings of Bt4,089mn, +45.1% YoY.

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.

Asset World Corporation (AWC TB)

KTX Zoom - Feb 8, 0224

Technically, we expect the SET Index to move sideways up, with the resistance at 1,409 points (75-day EMA/1,416 points) and the support at 1,390...

Krungthai XSpring

AWC : 3Q22 Core Profit Beat Our Estimate but Below Market Expectation

The company report 3Q22 net profit at Bt1.0bn (+49%YoY +32%QoQ). However, stripping out extra gain from asset valuation, AWC would incurred loss...

Pi Securities PCL, Thailand

AWC : Solid Long-Term Earnings Growth, but on Demanding Valuation

Expect the company’s core operation to turn profit in 4Q22, supported by solid recovery in hotels’ RevPar and lower rent discount given to tenants...

Pi Securities PCL, Thailand

AWC : On Its Pace of Gradual Recovery

Maintain HOLD rating for AWC after rolled over target price to Bt5.40 (Previous TP:4.50). We expect the company earnings in 2H22 to grow strongly...

Pi Securities PCL, Thailand

Big Cap Tactical Picks - August 9, 2022

We suggest selling JMART after we recommended buying it yesterday because the stock has fallen out of our top rankings (with the return at +0.51%).

Krungthai XSpring