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 Oil Fund will be used as the mechanism to cap the diesel price after the Bt5/liter excise tax reduction scheme expires on July 20, 2023, which is not a surprise to the market.</li><li>The financial position of the Oil Fund is at a manageable level.</li><li>The marketing margin being left untouched eases concern and is likely to create positive sentiment for oil retailers, especially PTG, whose exposure to diesel volume sold through oil service stations is higher than peers at 77% (vs. 45-57% for peers). </li></ul>

The Oil Fund will be used as the mechanism to cap the diesel price after the Bt5/liter excise tax reduction scheme expires on July 20, 2023, which is not a surprise to the market.The financial position of the Oil Fund is at a manageable level.The marketing margin being left untouched eases concern and is likely to create positive sentiment for oil retailers, especially PTG, whose exposure to diesel volume sold through oil service stations is higher than peers at 77% (vs. 45-57% for peers). 

Industry Update – Energy (Oil Retailers)

Equity Bottom-Up

<p><span style="font-size: var(--content-font-size);">We believe the slowdown in the recovery of the refinery and marketing business following the spread of the Delta variant has been largely priced into BCP’s share price. Meanwhile, the company’s diversified earnings along with the solid contribution from power will remain the cushion, particularly amid the peak season for the contribution from Nam San 3A and Nam San 3B in 3Q. We maintain a Buy (with the newly revised TP of Bt28), expecting the resumption of core earnings momentum upon the easing of the COVID-19 impact.</span></p>

We believe the slowdown in the recovery of the refinery and marketing business following the spread of the Delta variant has been largely priced into BCP’s share price. Meanwhile, the company’s diversified earnings along with the solid contribution from power will remain the cushion, particularly amid the peak season for the contribution from Nam San 3A and Nam San 3B in 3Q. We maintain a Buy (with the newly revised TP of Bt28), expecting the resumption of core earnings momentum upon the easing of the COVID-19 impact.

Company Update: Bangchak Corporation Plc. (BCP)

Thailand

Bangchak Corporation Public Company Limited operates as an energy company. The Company offers petroleum exploration and production, biomass, crude oil, and solar energy. Bangchak markets its products in Thailand.

Bangchak Corporation (BCP TB)

Industry Update – Energy (Oil Retailers)

The Oil Fund will be used as the mechanism to cap the diesel price after the Bt5/liter excise tax reduction scheme expires on July 20, 2023, which...

Krungthai XSpring

Company Update: Bangchak Corporation Plc. (BCP)

We believe the slowdown in the recovery of the refinery and marketing business following the spread of the Delta variant has been largely priced...

Krungthai XSpring