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

Bangkok Expressway and Metro / Equity Bottom-Up

<ul><li>We add BEM to our portfolio, as the stock should benefit from the increases in ridership in the MRT system and traffic volume following the resumption of economic activities.</li><li>The consensus estimate calls for 2022E earnings of Bt2,496mn, growing 247.12% YoY.</li><li>Meanwhile, the consensus views that the potential for the firm to win the bidding contest for the Orange Line mass transit project (western section), which will take place in 1H23, will pose upside to the share price of around Bt1-1.5/share as the auction date approaches.</li></ul>

We add BEM to our portfolio, as the stock should benefit from the increases in ridership in the MRT system and traffic volume following the resumption of economic activities.The consensus estimate calls for 2022E earnings of Bt2,496mn, growing 247.12% YoY.Meanwhile, the consensus views that the potential for the firm to win the bidding contest for the Orange Line mass transit project (western section), which will take place in 1H23, will pose upside to the share price of around Bt1-1.5/share as the auction date approaches.

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

<ul>
<li>The company 2Q22 net profit came out above our expectation at Bt634m, the highest level in the past seven quarter, mainly supported by solid recovery in toll and MRT traffic </li>
<li>Strong recovery in earnings in2Q22 and 2H22 2Q22 revenue reported at Bt3.3bn (+36%YoY +5%QoQ) supported by solid rebound in daily average MRT ridership to 231k trips (+94%YoY +23%QoQ) </li>
<li>We anticipate average daily MRT ridership in 2H22 to recover to roughly 310k trips by end of 2022, the level last time we have seen in Nov’21. </li>
</ul>


The company 2Q22 net profit came out above our expectation at Bt634m, the highest level in the past seven quarter, mainly supported by solid recovery in toll and MRT traffic 
Strong recovery in earnings in2Q22 and 2H22 2Q22 revenue reported at Bt3.3bn (+36%YoY +5%QoQ) supported by solid rebound in daily average MRT ridership to 231k trips (+94%YoY +23%QoQ) 
We anticipate average daily MRT ridership in 2H22 to recover to roughly 310k trips by end of 2022, the level last time we have seen in Nov’21. 


Bem : Expect 2H22 Earnings to Continue to Improve While Reaching Pre-COVID

<ul>
<li>Maintain BUY recommendation for BEM with a target price of Bt9.50.We expect the company to report 2Q22 net profit at Bt577m,the highest level in the past 11 quarter, mainly supported</li>
<li>Strong recovery in earnings in2Q22 and 2H22 2Q22 Revenue shall be reported at Bt3.3bn (+36%YoY +6%QoQ) supported by solid rebound in daily average MRT ridership to 231k trips (+94%YoY +23%QoQ) </li>
<li>We anticipate average daily MRT ridership to recover substantially in 2H22 to around 310k trips by end of this year,the level last time we have seen in Nov’21. However, pre-COVID</li>
</ul>


Maintain BUY recommendation for BEM with a target price of Bt9.50.We expect the company to report 2Q22 net profit at Bt577m,the highest level in the past 11 quarter, mainly supported
Strong recovery in earnings in2Q22 and 2H22 2Q22 Revenue shall be reported at Bt3.3bn (+36%YoY +6%QoQ) supported by solid rebound in daily average MRT ridership to 231k trips (+94%YoY +23%QoQ) 
We anticipate average daily MRT ridership to recover substantially in 2H22 to around 310k trips by end of this year,the level last time we have seen in Nov’21. However, pre-COVID


BEM : Expect 2Q22 Earnings to Hit 11 Quarter High

<ul>
<li>We expect the company to report net profit of Bt400m in 1Q22. (+1%QoQ+31%YoY), the highest level in the past five quarters.YoY expansion will be due to effective operating cost management</li>
<li>Expect daily ridership to reach 70% of pre-COVID19 level by 3Q22, under assumption that there will be no major restriction measures induced by the virus outbreak. Furthermore, we expect ridership </li>
<li>Earlier-Than-Expected bidding for Orange line will be the re-rating catalyst (previously expected to take place within 1H22). We estimate upsides from this project at Bt1.90 per share.</li>
</ul>


We expect the company to report net profit of Bt400m in 1Q22. (+1%QoQ+31%YoY), the highest level in the past five quarters.YoY expansion will be due to effective operating cost management
Expect daily ridership to reach 70% of pre-COVID19 level by 3Q22, under assumption that there will be no major restriction measures induced by the virus outbreak. Furthermore, we expect ridership 
Earlier-Than-Expected bidding for Orange line will be the re-rating catalyst (previously expected to take place within 1H22). We estimate upsides from this project at Bt1.90 per share.


BEM: Expect to Report Five-Quarter High Net Profit in 1Q22

<ul>
<li>We maintain BEM with a BUY rating and a target price of Bt10.30 derived from SOTP methodology, which is equivalent to 51.5xPE’22E.</li>
<li>We expect the company to report net profit of Bt290m in 4Q21. (+168%QoQ -49%YoY), the highest level in the past three quarters.</li>
<li>YoY contraction will be mainly due to impact from 3rd wave of COVID-19 widespread, which trimmed down average daily toll traffic to 984k trips/day(-13%YoY +47%QoQ) and MRT ridership to 175k </li>
</ul>


We maintain BEM with a BUY rating and a target price of Bt10.30 derived from SOTP methodology, which is equivalent to 51.5xPE’22E.
We expect the company to report net profit of Bt290m in 4Q21. (+168%QoQ -49%YoY), the highest level in the past three quarters.
YoY contraction will be mainly due to impact from 3rd wave of COVID-19 widespread, which trimmed down average daily toll traffic to 984k trips/day(-13%YoY +47%QoQ) and MRT ridership to 175k 


BEM: Expect 4Q21 Earnings to Recover Strongly and Onward to 2022

Thailand

Bangkok Expressway and Metro Public Company Limited (BEM) is a Thai public transportation company that constructs, operates, and manages expressways and rapid rail transit systems. It operates multiple metro lines and expressways in Bangkok, and also engages in commercial development activities such as retail space rental and advertising within its transportation networks. The company is headquartered in Bangkok, Thailand, and was founded in 1998, with the current entity formed by a merger in 2015.

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Bangkok Expressway and Metro (BEM TB)

Big Cap Tactical Picks

We add BEM to our portfolio, as the stock should benefit from the increases in ridership in the MRT system and traffic volume following the...

Krungthai XSpring

Bem : Expect 2H22 Earnings to Continue to Improve While Reaching Pre-COVID

The company 2Q22 net profit came out above our expectation at Bt634m, the highest level in the past seven quarter, mainly supported by solid...

Pi Securities PCL, Thailand

BEM : Expect 2Q22 Earnings to Hit 11 Quarter High

Maintain BUY recommendation for BEM with a target price of Bt9.50. We expect the company to report 2Q22 net profit at Bt577m, the highest level in...

Pi Securities PCL, Thailand

BEM: Expect to Report Five-Quarter High Net Profit in 1Q22

We expect the company to report net profit of Bt400m in 1Q22. (+1%QoQ +31%YoY), the highest level in the past five quarters. YoY expansion will be...

Pi Securities PCL, Thailand

BEM: Expect 4Q21 Earnings to Recover Strongly and Onward to 2022

We maintain BEM with a BUY rating and a target price of Bt10.30 derived from SOTP methodology, which is equivalent to 51.5xPE’22E.

Pi Securities PCL, Thailand

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