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>TX has assessed the possible impacts of the Digital Wallet (DW) scheme, taking into account consumer behavior as reflected in the inflation basket of low-income earners and the market shares of operators.</li><li>The assessment is premised on the notion that the networks of convenience stores may not reap immediate benefits from the initial round of spending facilitated by the DW scheme, which is expected to be confined to eligible individuals and specific shops meeting the established criteria.</li><li>It is anticipated that the implementation of the DW scheme will bolster the 2025E profit forecasts for the 11 SET-listed companies under our study by approximately Bt2.1bn. </li></ul>

TX has assessed the possible impacts of the Digital Wallet (DW) scheme, taking into account consumer behavior as reflected in the inflation basket of low-income earners and the market shares of operators.The assessment is premised on the notion that the networks of convenience stores may not reap immediate benefits from the initial round of spending facilitated by the DW scheme, which is expected to be confined to eligible individuals and specific shops meeting the established criteria.It is anticipated that the implementation of the DW scheme will bolster the 2025E profit forecasts for the 11 SET-listed companies under our study by approximately Bt2.1bn. 

Digital Wallet: Indirect Benefits to Large Operators

Thematic (Sector/Industry)

<ul><li>Asian bourses, including the SET, soared against rising US bond yields after tensions in the Middle East subsided.</li><li>A buying force quickly targeted large caps, such as banking, energy, finance, transportation, food and commerce stocks.</li><li>Meanwhile, foreign investors’ turn to buying helped the index move in positive territory all day, but volume remained light.</li></ul>

Asian bourses, including the SET, soared against rising US bond yields after tensions in the Middle East subsided.A buying force quickly targeted large caps, such as banking, energy, finance, transportation, food and commerce stocks.Meanwhile, foreign investors’ turn to buying helped the index move in positive territory all day, but volume remained light.

<ul><li>Bank of America’s Global Fund Manager Survey for March maintained a bullish stance on equity investment, with a consistent increase in the weighting for the fifth consecutive month, now standing at 28% overweight (OW), compared to 21% OW in February and 9% OW in January.</li><li>There has been a notable shift toward allocating more investment to equities in the EU, global emerging markets (GEM) and Japan, leading to a reduction in the weighting on US equities to 8% OW from 21% OW.</li><li>This shift is underpinned by the belief that the global economy is poised to surpass projections. </li></ul>

Bank of America’s Global Fund Manager Survey for March maintained a bullish stance on equity investment, with a consistent increase in the weighting for the fifth consecutive month, now standing at 28% overweight (OW), compared to 21% OW in February and 9% OW in January.There has been a notable shift toward allocating more investment to equities in the EU, global emerging markets (GEM) and Japan, leading to a reduction in the weighting on US equities to 8% OW from 21% OW.This shift is underpinned by the belief that the global economy is poised to surpass projections. 

Special Report: FMS Still Favors Equities but More Diversified

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>Maintain HOLD recommendation for DOHOME with a target price of Bt14.10. DOHOME’s 3Q22 net profit came in at Bt50m (-85%YoY,-84%QoQ),in-line with our forecast but below BB consensus estimated by 34%</li>
<li>3Q22 earnings sink both YoY and QoQ Its net profit came out at Bt50m (-85%YoY, -84%QoQ),the lowest level since listed.The 9M22 result accounted for 88%of full-year net profit in 2022.</li>
<li>The significant drop in 3Q22 earnings pressured by lower margin from steel products, clearance sales in decoration materials category, and rising all products cost as a result from rising inflation.</li>
</ul>


Maintain HOLD recommendation for DOHOME with a target price of Bt14.10. DOHOME’s 3Q22 net profit came in at Bt50m (-85%YoY,-84%QoQ),in-line with our forecast but below BB consensus estimated by 34%
3Q22 earnings sink both YoY and QoQ Its net profit came out at Bt50m (-85%YoY, -84%QoQ),the lowest level since listed.The 9M22 result accounted for 88%of full-year net profit in 2022.
The significant drop in 3Q22 earnings pressured by lower margin from steel products, clearance sales in decoration materials category, and rising all products cost as a result from rising inflation.


<ul>
<li>We downgrade our recommendation from BUY to HOLD with a target price of Bt14.1 (Previous TP:Bt22).Our new target price reflects 2023 earnings downward revision by 36%to factor in lower margin </li>
<li>Expect 3Q22 earnings to be bottom of the year Revenue in 3Q22 is expected to post at Bt7.5bn (+24%YoY,-5%QoQ). YoY growth in revenue will mainly drive by SSSG at 7%YoY</li>
<li>We assume gross profit margin in 3Q22 to contract to 14%,the lowest level in the past 15 quarters mainly pressured by lower margin from steel products,clearance sales in decoration materials</li>
</ul>


We downgrade our recommendation from BUY to HOLD with a target price of Bt14.1 (Previous TP:Bt22).Our new target price reflects 2023 earnings downward revision by 36%to factor in lower margin 
Expect 3Q22 earnings to be bottom of the year Revenue in 3Q22 is expected to post at Bt7.5bn (+24%YoY,-5%QoQ). YoY growth in revenue will mainly drive by SSSG at 7%YoY
We assume gross profit margin in 3Q22 to contract to 14%,the lowest level in the past 15 quarters mainly pressured by lower margin from steel products,clearance sales in decoration materials


DOHOME : Expect the Lowest Earnings Since Listed in 3Q22

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.

Dohome PCL (DOHOME TB)

Digital Wallet: Indirect Benefits to Large Operators

TX has assessed the possible impacts of the Digital Wallet (DW) scheme, taking into account consumer behavior as reflected in the inflation basket...

Krungthai XSpring

Technical Analysis - April 23, 2024

Asian bourses, including the SET, soared against rising US bond yields after tensions in the Middle East subsided. A buying force quickly targeted...

Krungthai XSpring

Special Report: FMS Still Favors Equities but More Diversified

Bank of America’s Global Fund Manager Survey for March maintained a bullish stance on equity investment, with a consistent increase in the...

Krungthai XSpring

DOHOME : Weak 3Q22 Earnings as Expected

Maintain HOLD recommendation for DOHOME with a target price of Bt14.10. DOHOME’s 3Q22 net profit came in at Bt50m (-85%YoY, -84%QoQ), in-line with...

Pi Securities PCL, Thailand

DOHOME : Expect the Lowest Earnings Since Listed in 3Q22

We downgrade our recommendation from BUY to HOLD with a target price of Bt14.1 (Previous TP: Bt22). Our new target price reflects 2023 earnings...

Pi Securities PCL, Thailand