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

Central Retail Corporation / Equity Bottom-Up

<ul><li>Foreigners to buy back stocks whose share prices fell sharply last year, boosting stocks in the consumer discretionary sector</li><li>The SET Index is expected to fluctuate in the range of 1,670-1,690 points.</li><li>As for daily investment, we recommend stocks in the retail and food sectors whose share prices have recently underperformed the market but are expected to show good earnings growth in 2023E, as they will benefit from ongoing fund flows toward consumer discretionary stocks</li></ul>

Foreigners to buy back stocks whose share prices fell sharply last year, boosting stocks in the consumer discretionary sectorThe SET Index is expected to fluctuate in the range of 1,670-1,690 points.As for daily investment, we recommend stocks in the retail and food sectors whose share prices have recently underperformed the market but are expected to show good earnings growth in 2023E, as they will benefit from ongoing fund flows toward consumer discretionary stocks

<ul><li>We expect the MPC to continue raising the policy interest rate in 2023E to the terminal rate of 2.0%, which is where the real rate will turn positive at +0.1%, based on a CPI of 1.9% as of the end of 4Q23E (Bloomberg consensus).</li><li>The 2023E Thai economy is projected to grow at its full potential at 4.5% YoY (vs. the current projection of 3.7% YoY) on the back of the expected recovery of tourism thanks to China’s sooner-than-anticipated reopening.</li><li>Meanwhile, inflation has continued to slow down. We continue to recommend reopening plays whose earnings are likely to recover in line with the Thai economic outlook. </li></ul>

We expect the MPC to continue raising the policy interest rate in 2023E to the terminal rate of 2.0%, which is where the real rate will turn positive at +0.1%, based on a CPI of 1.9% as of the end of 4Q23E (Bloomberg consensus).The 2023E Thai economy is projected to grow at its full potential at 4.5% YoY (vs. the current projection of 3.7% YoY) on the back of the expected recovery of tourism thanks to China’s sooner-than-anticipated reopening.Meanwhile, inflation has continued to slow down. We continue to recommend reopening plays whose earnings are likely to recover in line with the Thai economic outlook. 

MPC - MPC Raised the Policy Interest Rate by 0.25% to 1.50%

<ul><li>The SET Index is expected to move sideways, with the resistance at 1,615/1,620 points and the support at 1,600/1,597 points.</li><li>Negative factors include the Thai trade balance in November, which is forecast to continue to mark a deficit, albeit to a lesser extent than in October.</li><li>We thus recommend holding cash or brief speculation.</li></ul>

The SET Index is expected to move sideways, with the resistance at 1,615/1,620 points and the support at 1,600/1,597 points.Negative factors include the Thai trade balance in November, which is forecast to continue to mark a deficit, albeit to a lesser extent than in October.We thus recommend holding cash or brief speculation.

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>We remain positive on CRC’s food segment growth outlook in 2022 and ahead after the site visit at Tops CLUB store and Tops Food Hall store, backed</li>
<li>Positive toward Site visit at Tops CLUB  We have visited the first Tops CLUB store at behind Bangkok's Central Rama II. Tops CLUB is the first membership-based store of CRC. </li>
<li>Tops CLUB offers big pack size and target on middle to higher-income customers. Currently, Tops CLUB member reached 85,000 members after launched on 28 September 2022.</li>
</ul>


We remain positive on CRC’s food segment growth outlook in 2022 and ahead after the site visit at Tops CLUB store and Tops Food Hall store, backed
Positive toward Site visit at Tops CLUB  We have visited the first Tops CLUB store at behind Bangkok's Central Rama II. Tops CLUB is the first membership-based store of CRC. 
Tops CLUB offers big pack size and target on middle to higher-income customers. Currently, Tops CLUB member reached 85,000 members after launched on 28 September 2022.


<ul>
<li>Maintain HOLD recommendation with a target price of Bt43 due to limited upside to our target price.CRC’s 3Q22 net profit came in at Bt1.2bn (turnaround from a loss of Bt2.2bn,-21%QoQ)</li>
<li>3Q22 profit thanks to strong recover in fashion business   Excluding extraordinary items, core profit was at Bt1.29bn (turnaround from a loss of Bt2.1bn,-30%QoQ). The 9M22 result accounted for 70%</li>
<li>Food business (39% sales contribution), Food revenue was at Bt21bn (+26%YoY, +3%QoQ), following strong SSSG in Thailand (+3%YoY) and Vietnam (+54%YoY), supported by a recovery in customer traffic in stores </li>
</ul>


Maintain HOLD recommendation with a target price of Bt43 due to limited upside to our target price.CRC’s 3Q22 net profit came in at Bt1.2bn (turnaround from a loss of Bt2.2bn,-21%QoQ)
3Q22 profit thanks to strong recover in fashion business   Excluding extraordinary items, core profit was at Bt1.29bn (turnaround from a loss of Bt2.1bn,-30%QoQ). The 9M22 result accounted for 70%
Food business (39% sales contribution), Food revenue was at Bt21bn (+26%YoY, +3%QoQ), following strong SSSG in Thailand (+3%YoY) and Vietnam (+54%YoY), supported by a recovery in customer traffic in stores 


Thailand

Central Retail Corporation Public Company Limited is a multi-format retailing business operating across Thailand, Italy, and Vietnam, and is a flagship company of Central Group. It offers a diverse portfolio across food, fashion, hardline, and property segments, encompassing department stores, supermarkets, hypermarkets, specialty stores, and omnichannel services. The company was founded in 1947 and is headquartered in Bangkok, Thailand.

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Central Retail Corporation (CRC TB)

World Market Summary

Foreigners to buy back stocks whose share prices fell sharply last year, boosting stocks in the consumer discretionary sector The SET Index is...

Krungthai XSpring

MPC - MPC Raised the Policy Interest Rate by 0.25% to 1.50%

We expect the MPC to continue raising the policy interest rate in 2023E to the terminal rate of 2.0%, which is where the real rate will turn...

Krungthai XSpring

Market Outlook

The SET Index is expected to move sideways, with the resistance at 1,615/1,620 points and the support at 1,600/1,597 points. Negative factors...

Krungthai XSpring

CRC : Rebranding for Growth

We remain positive on CRC’s food segment growth outlook in 2022 and ahead after the site visit at Tops CLUB store and Tops Food Hall store, backed...

Pi Securities PCL, Thailand

CRC : 3Q22 Performance Turned to Profit

Maintain HOLD recommendation with a target price of Bt43 due to limited upside to our target price. CRC’s 3Q22 net profit came in at Bt1.2bn...

Pi Securities PCL, Thailand

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