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>Although Asian bourses were able to rebound on the back of tech stocks, alongside the jump in US markets after bond yields decreased, the SET only managed to edge up due to a lack of new factors to boost it.</li><li>Meanwhile, ADVANC and banking stocks fell, and foreign investors kept selling for a third day amid continued thin volume.</li><li>The index has an unclear direction after continuing to swing sideways in a narrow range, but we expect upward movement because it attempted to rise despite facing selling pressure.</li></ul>

Although Asian bourses were able to rebound on the back of tech stocks, alongside the jump in US markets after bond yields decreased, the SET only managed to edge up due to a lack of new factors to boost it.Meanwhile, ADVANC and banking stocks fell, and foreign investors kept selling for a third day amid continued thin volume.The index has an unclear direction after continuing to swing sideways in a narrow range, but we expect upward movement because it attempted to rise despite facing selling pressure.

Technical Analysis - The Trend - Feb 16, 2024

<ul><li>The SET traded within a narrow range throughout the day, reflecting subdued sentiment attributed to the Chinese New Year festival.</li><li>Furthermore, with most Asian bourses closed, trading activity remained sluggish.</li><li>Large cap stocks experienced limited fluctuations, resulting in an index outlook devoid of clear signals. However, foreign investors turned to buy slightly.</li></ul>

The SET traded within a narrow range throughout the day, reflecting subdued sentiment attributed to the Chinese New Year festival.Furthermore, with most Asian bourses closed, trading activity remained sluggish.Large cap stocks experienced limited fluctuations, resulting in an index outlook devoid of clear signals. However, foreign investors turned to buy slightly.

Equity Bottom-Up

<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%

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

Central Retail Corp Ltd / Equity Bottom-Up

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

Central Retail Corp Ltd (CRC TB)

Technical Analysis - The Trend - Feb 16, 2024

The index has an unclear direction after continuing to swing sideways in a narrow range, but we expect upward movement because it attempted to rise...

Krungthai XSpring

Technical Analysis - FEBRUARY 13, 2024

The SET traded within a narrow range throughout the day, reflecting subdued sentiment attributed to the Chinese New Year festival.

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

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