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

Central Retail Corp Ltd / Equity Bottom-Up

<ul>
<li>Maintain BUY recommendation for CRC with a target price of Bt43. We expect the company to report 2Q22 net profit at Bt1.4bn (recovering from a loss YoY, +16%QoQ), </li>
<li>Expect 2Q22 earnings to recover to profit We 2Q22 earnings is expected to recover from net loss of Bt471m in 2Q21 to profit at Bt1.4bn(+16%QoQ)as a result of a recovery</li>
<li>We expect CRC to post 2Q22 revenue at Bt52.7bn(+22%YoY, +1%QoQ), driven by 1) an expected positive SSSG in all segments comprise of food segment at +17%YoY, hardline segment at +2%YoY</li>
</ul>


Maintain BUY recommendation for CRC with a target price of Bt43. We expect the company to report 2Q22 net profit at Bt1.4bn (recovering from a loss YoY, +16%QoQ), 
Expect 2Q22 earnings to recover to profit We 2Q22 earnings is expected to recover from net loss of Bt471m in 2Q21 to profit at Bt1.4bn(+16%QoQ)as a result of a recovery
We expect CRC to post 2Q22 revenue at Bt52.7bn(+22%YoY, +1%QoQ), driven by 1) an expected positive SSSG in all segments comprise of food segment at +17%YoY, hardline segment at +2%YoY


CRC : Expect 2Q22 Performance to Turn to Profit

<ul>
<li>Last week analyst meeting came out with neutral tone.We reiterate our BUY rating for CRC with a target price of Bt43.0,based on DCF (WACC of 8.2% and TG of 2%)</li>
<li>Management maintained its key 2022 financial guidance. CRC targeted 2022 sales growth of 15%-20%YoY, mainly from fashion business and targeted GPM retail sales to expend by 100-120bps YoY.</li>
<li>•CRC showed three measures to mitigate the effect from uncertainties under global issue such as(1)cost optimization by controlling OPEX growth to not be higher than 50% of total sales growth</li>
</ul>


Last week analyst meeting came out with neutral tone.We reiterate our BUY rating for CRC with a target price of Bt43.0,based on DCF (WACC of 8.2% and TG of 2%)
Management maintained its key 2022 financial guidance. CRC targeted 2022 sales growth of 15%-20%YoY, mainly from fashion business and targeted GPM retail sales to expend by 100-120bps YoY.
•CRC showed three measures to mitigate the effect from uncertainties under global issue such as(1)cost optimization by controlling OPEX growth to not be higher than 50% of total sales growth


CRC: Growth Momentum Intact Despite Uncertainties

<ul>
<li>We reiterate our BUY rating for CRC with a target price of Bt43.0, based on DCF (WACC of 8.2% and TG of 2%), implying 35xPE’23E, close to Thai commerce sector.</li>
<li>We expect CRC to report 1Q22 net profit at Bt1.2bn (+208%YoY, -48%QoQ).</li>
<li>YoY growth will be supported by a recovery in sales from fashion business both Thailand and Italy, a solid demand recovery from tourism related parties, and government stimulus </li>
</ul>


We reiterate our BUY rating for CRC with a target price of Bt43.0, based on DCF (WACC of 8.2% and TG of 2%), implying 35xPE’23E, close to Thai commerce sector.
We expect CRC to report 1Q22 net profit at Bt1.2bn (+208%YoY, -48%QoQ).
YoY growth will be supported by a recovery in sales from fashion business both Thailand and Italy, a solid demand recovery from tourism related parties, and government stimulus 


CRC: Expect Strong Earnings Growth YoY in 1Q22

<ul>
<li>CRC reported 3Q21 net loss of Bt2.2bn (Net profit of Bt837m in 3Q20 and net loss of Bt471m in 2Q21) eroded by partial lockdown measures in Thailand and Vietnam.</li>
<li>3Q21 revenue was at Bt39bn (-12%YoY, -11%QoQ) due to temporary closures in some non-food stores during 12 Jul -31 Aug 21 in Thailand and throughout 3 months in Vietnam.</li>
<li>•Meanwhile, Italy continued to grow, and all stores resumed opening since Apr 21.</li>
</ul>


CRC reported 3Q21 net loss of Bt2.2bn (Net profit of Bt837m in 3Q20 and net loss of Bt471m in 2Q21) eroded by partial lockdown measures in Thailand and Vietnam.
3Q21 revenue was at Bt39bn (-12%YoY, -11%QoQ) due to temporary closures in some non-food stores during 12 Jul -31 Aug 21 in Thailand and throughout 3 months in Vietnam.
•Meanwhile, Italy continued to grow, and all stores resumed opening since Apr 21.


CRC: The 2nd Consecutive Quarter Loss in 3Q21

Thailand

Central Retail Corp Ltd operates general merchandise stores. The Company offers electronics, sports, stationery, home improvement, and office products. Central Retail serves customers in Thailand.

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Central Retail Corp Ltd (CRC 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

CRC : Expect 2Q22 Performance to Turn to Profit

Maintain BUY recommendation for CRC with a target price of Bt43. We expect the company to report 2Q22 net profit at Bt1.4bn (recovering from a loss...

Pi Securities PCL, Thailand

CRC: Growth Momentum Intact Despite Uncertainties

Last week analyst meeting came out with neutral tone. We reiterate our BUY rating for CRC with a target price of Bt43.0, based on DCF (WACC of 8.2%...

Pi Securities PCL, Thailand

CRC: Expect Strong Earnings Growth YoY in 1Q22

We reiterate our BUY rating for CRC with a target price of Bt43.0, based on DCF (WACC of 8.2% and TG of 2%), implying 35xPE’23E, close to Thai...

Pi Securities PCL, Thailand

CRC: The 2nd Consecutive Quarter Loss in 3Q21

CRC reported 3Q21 net loss of Bt2.2bn (Net profit of Bt837m in 3Q20 and net loss of Bt471m in 2Q21) eroded by partial lockdown measures in Thailand...

Pi Securities PCL, Thailand

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