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

<ul><li>KTX maintains our Neutral rating (FV = Bt22.76, based on the earnings yield and a required rate of return of 3.6%).</li><li>Our valuation metrics suggest a strong earnings outlook in the long term, with an expected earnings turnaround.</li><li>Meanwhile, the fundamental and tactical views are neutral.</li></ul>

KTX maintains our Neutral rating (FV = Bt22.76, based on the earnings yield and a required rate of return of 3.6%).Our valuation metrics suggest a strong earnings outlook in the long term, with an expected earnings turnaround.Meanwhile, the fundamental and tactical views are neutral.

Betagro - Expected a Core Loss in 1Q24E Before an Earnings Turnaround in 2H24E

<ul><li>The firm reported losses in 4Q23 and 2023, but the 2024E earnings are forecast to turn around to profit.</li><li>The GPM is expected to improve clearly in 2H24E. However, the recovery outlook in 1H24E is still at risk, as swine prices may remain stable or weaken.</li><li>KTX maintains a Neutral rating (FV = Bt22.76, based on the earnings yield and a required rate of return of 3.6%).</li></ul>

The firm reported losses in 4Q23 and 2023, but the 2024E earnings are forecast to turn around to profit.The GPM is expected to improve clearly in 2H24E. However, the recovery outlook in 1H24E is still at risk, as swine prices may remain stable or weaken.KTX maintains a Neutral rating (FV = Bt22.76, based on the earnings yield and a required rate of return of 3.6%).

<ul><li>We recommend cutting losses on <strong>BTG</strong> (return: -5.19%).</li><li>We add <strong>KBANK</strong> to the portfolio based on the expectation that the 4Q23E earnings performance will improve on seasonality (+236.01% QoQ and +1.31% YoY to Bt10.6bn).</li></ul>

We recommend cutting losses on BTG (return: -5.19%).We add KBANK to the portfolio based on the expectation that the 4Q23E earnings performance will improve on seasonality (+236.01% QoQ and +1.31% YoY to Bt10.6bn).

<ul><li>KTX has revised up our rating to Neutral (vs. Underperform previously).</li><li>We have revised down the 2023-25E earnings.</li><li>Our projection for 2023E now calls for the first loss in five years, followed by an earnings turnaround in 2024E.</li></ul>

KTX has revised up our rating to Neutral (vs. Underperform previously).We have revised down the 2023-25E earnings.Our projection for 2023E now calls for the first loss in five years, followed by an earnings turnaround in 2024E.

Expect Losses in 3Q-4Q23E; Revised Down 2023-25E Earnings

<ul><li>BTG reported a 2Q23 net loss of Bt351mn, in line with the expectation.</li><li>The net loss in 2Q23 represented an earnings deterioration both YoY and QoQ due to significant YoY and QoQ declines in the gross profit margin (GPM) as well as the QoQ drops in sales.</li><li>Sales declined by 5% YoY and 7% QoQ to Bt26.5bn owing to lower domestic swine prices.</li></ul>

BTG reported a 2Q23 net loss of Bt351mn, in line with the expectation.The net loss in 2Q23 represented an earnings deterioration both YoY and QoQ due to significant YoY and QoQ declines in the gross profit margin (GPM) as well as the QoQ drops in sales.Sales declined by 5% YoY and 7% QoQ to Bt26.5bn owing to lower domestic swine prices.

Earnings Review - Betagro Plc. (BTG) - AUGUST 15, 2023

Thailand

Betagro is a leading integrated agro-industrial and food company in Thailand. Its core businesses include animal feed production, livestock farming, animal health products, and the production and distribution of meat, eggs, fish, and processed foods, including pet food. The company is headquartered in Bangkok, Thailand, and was founded in 1967.

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Betagro (BTG TB)

Betagro - Expected a Core Loss in 1Q24E Before an Earnings Turnaround in 2H24E

KTX maintains our Neutral rating (FV = Bt22.76, based on the earnings yield and a required rate of return of 3.6%). Our valuation metrics suggest a...

Krungthai XSpring

Betagro -In- Line 4Q23 and 2023 Earnings

The GPM is expected to improve clearly in 2H24E. However, the recovery outlook in 1H24E is still at risk, as swine prices may remain stable or weaken.

Krungthai XSpring

Big Cap Tactical Picks

We recommend cutting losses on BTG (return: -5.19%). We add KBANK to the portfolio based on the expectation that the 4Q23E earnings performance...

Krungthai XSpring

Expect Losses in 3Q-4Q23E; Revised Down 2023-25E Earnings

KTX has revised up our rating to Neutral (vs. Underperform previously). We have revised down the 2023-25E earnings. Our projection for 2023E now...

Krungthai XSpring

Earnings Review - Betagro Plc. (BTG) - AUGUST 15, 2023

The net loss in 2Q23 represented an earnings deterioration both YoY and QoQ due to significant YoY and QoQ declines in the gross profit margin...

Krungthai XSpring

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