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>Yesterday, our Small Cap portfolio generated a return of -0.73% vs. the SET Index at -0.26%.</li>
<li>Most stocks in the portfolio declined in line with the market’s movement after the index was unable to surpass the resistance at 1,600 points.</li>
<li>The stocks with the biggest price declines were DOHOME (-3.77%), DOD (-2.46%), (WICE -2.46%) and RS (-1.89%).</li>
</ul>


Yesterday, our Small Cap portfolio generated a return of -0.73% vs. the SET Index at -0.26%.
Most stocks in the portfolio declined in line with the market’s movement after the index was unable to surpass the resistance at 1,600 points.
The stocks with the biggest price declines were DOHOME (-3.77%), DOD (-2.46%), (WICE -2.46%) and RS (-1.89%).


Cross Asset Strategy

<ul><li>We suggest taking profit on BAFS, M, SIS and LST (with the returns since they were added at +7.7%, +1.5%, +6.6% and +1.0%, respectively) because they have fallen out of our top rankings.</li><li>We recommend replacing them with AMANAH and KSL.</li><li>AMANAH’s 2022E net profit is expected to remain flat YoY at Bt309mn, based on our conservative assumption for loan portfolio growth of +10.0% YoY.</li></ul>

We suggest taking profit on BAFS, M, SIS and LST (with the returns since they were added at +7.7%, +1.5%, +6.6% and +1.0%, respectively) because they have fallen out of our top rankings.We recommend replacing them with AMANAH and KSL.AMANAH’s 2022E net profit is expected to remain flat YoY at Bt309mn, based on our conservative assumption for loan portfolio growth of +10.0% YoY.

Small Cap Top Picks - Changes in Recommended List

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

<ul>
<li>DOHOME share price dropped 24%YTD as we believe it has already priced in near-term negative factors such as impact from inflation and expect steel products margin to soften YoY. </li>
<li>Expect 2Q22 earnings sink both YoY and QoQ.We expect 2Q22 net profit to be at Bt324m(-46%YoY,-34%QoQ)as a result of rising products costs and higher SG&amp;A expense from new stores expansion.</li>
<li>We expect DOHOME to post 2Q22 revenue at Bt7.8bn(+23%YoY, -6%QoQ).The YoY growth in revenue driven by SSSG of +11% and new stores expansion.Meanwhile, QoQ decrease in revenue due to seasonal </li>
</ul>


DOHOME share price dropped 24%YTD as we believe it has already priced in near-term negative factors such as impact from inflation and expect steel products margin to soften YoY. 
Expect 2Q22 earnings sink both YoY and QoQ.We expect 2Q22 net profit to be at Bt324m(-46%YoY,-34%QoQ)as a result of rising products costs and higher SG&amp;A expense from new stores expansion.
We expect DOHOME to post 2Q22 revenue at Bt7.8bn(+23%YoY, -6%QoQ).The YoY growth in revenue driven by SSSG of +11% and new stores expansion.Meanwhile, QoQ decrease in revenue due to seasonal 


DOHOME : Expect 2Q22 Earnings to Be Six-Quarters Low

<ul>
<li>We reiterate our HOLD rating for DOHOME with a target price of Bt21.4 (included stock dividend) derived from 35xPE’22E, which is close to the biggest home-improvement player in Thailand.</li>
<li>We expect DOHOME to report 1Q22 net profit at Bt468m (-14%YoY, +41%QoQ), QoQ growth will be supported by (1) high season quarter with a solid SSSG outpace peer at +26%YoY</li>
<li>We expect 2Q22 earnings continue to soften YoY pressured by (1) a drop in margin for steel products,which will trim down overall gross profit margin to roughly 18%-19% from 22.7%</li>
</ul>


We reiterate our HOLD rating for DOHOME with a target price of Bt21.4 (included stock dividend) derived from 35xPE’22E, which is close to the biggest home-improvement player in Thailand.
We expect DOHOME to report 1Q22 net profit at Bt468m (-14%YoY, +41%QoQ), QoQ growth will be supported by (1) high season quarter with a solid SSSG outpace peer at +26%YoY
We expect 2Q22 earnings continue to soften YoY pressured by (1) a drop in margin for steel products,which will trim down overall gross profit margin to roughly 18%-19% from 22.7%


DOHOME: Expect Earnings Increase QoQ from Seasonal Factor

<ul>
<li>A slowdown short-term performance but solid long-term growth outlook. We reiterate our BUY rating with a target price of Bt28.0 derived from 35xPE’22E,which is close to the biggest home-improvement player</li>
<li>We expect DOHOME to report 4Q21 net profit at Bt420m (+95%YoY, +23%QoQ), YoY growth will be supported by (1) a solid SSSG at +39%YoY, and (2) gross profit margin expansion </li>
<li>We expect 1H22 earnings to slightly soften YoY pressured by (1) a drop in margin for steel products,which will trim down overall gross profit margin to roughly 19% from 21.7%-22.7% </li>
</ul>


A slowdown short-term performance but solid long-term growth outlook. We reiterate our BUY rating with a target price of Bt28.0 derived from 35xPE’22E,which is close to the biggest home-improvement player
We expect DOHOME to report 4Q21 net profit at Bt420m (+95%YoY, +23%QoQ), YoY growth will be supported by (1) a solid SSSG at +39%YoY, and (2) gross profit margin expansion 
We expect 1H22 earnings to slightly soften YoY pressured by (1) a drop in margin for steel products,which will trim down overall gross profit margin to roughly 19% from 21.7%-22.7% 


DOHOME: Expect 4Q21 Earnings Grow Both YoY and QoQ

Thailand

Dohome Public Company Limited operates as a furnishing store. The Company retails hardware, tools, agricultural machinery, furniture, hvac equipment, and other related products. Dohome serves customers in Thailand.

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Dohome PCL (DOHOME TB)

Small Cap Top Picks - August 3, 2022

Most stocks in the portfolio declined in line with the market’s movement after the index was unable to surpass the resistance at 1,600 points.

Krungthai XSpring

Small Cap Top Picks - Changes in Recommended List

We suggest taking profit on BAFS, M, SIS and LST (with the returns since they were added at +7.7%, +1.5%, +6.6% and +1.0%, respectively) because...

Krungthai XSpring

DOHOME : Expect 2Q22 Earnings to Be Six-Quarters Low

DOHOME share price dropped 24%YTD as we believe it has already priced in near-term negative factors such as impact from inflation and expect steel...

Pi Securities PCL, Thailand

DOHOME: Expect Earnings Increase QoQ from Seasonal Factor

We reiterate our HOLD rating for DOHOME with a target price of Bt21.4 (included stock dividend) derived from 35xPE’22E, which is close to the...

Pi Securities PCL, Thailand

DOHOME: Expect 4Q21 Earnings Grow Both YoY and QoQ

A slowdown short-term performance but solid long-term growth outlook. We reiterate our BUY rating with a target price of Bt28.0 derived from...

Pi Securities PCL, Thailand

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