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>We are overweight the non-bank sector, underpinned by projected earnings growth at a 15% CAGR in 2023-2025E.</li><li>KTX views that the non-bank sector is transitioning into a phase of quality growth.</li><li>We have chosen SAWAD as our top pick thanks to its more outstanding earnings prospects in 2023-2025E compared to peers.</li></ul>

We are overweight the non-bank sector, underpinned by projected earnings growth at a 15% CAGR in 2023-2025E.KTX views that the non-bank sector is transitioning into a phase of quality growth.We have chosen SAWAD as our top pick thanks to its more outstanding earnings prospects in 2023-2025E compared to peers.

Equity Bottom-Up

<ul><li>The finance stocks under our coverage reported a combined net profit of Bt4.27bn in 1Q24, growing 4.7% YoY and 11.2% QoQ.</li><li>We expect the operating performances for the remainder of 2024E to continue improving, thanks to a decrease in provisions resulting from effective asset quality control.</li><li>We maintain our Overweight rating for auto title loan providers, and a Neutral rating for truck hire purchase loan operators.</li></ul>

The finance stocks under our coverage reported a combined net profit of Bt4.27bn in 1Q24, growing 4.7% YoY and 11.2% QoQ.We expect the operating performances for the remainder of 2024E to continue improving, thanks to a decrease in provisions resulting from effective asset quality control.We maintain our Overweight rating for auto title loan providers, and a Neutral rating for truck hire purchase loan operators.

Road to Recovery During the Remainder of the Year

<ul><li>The loss from repossessed motorcycles from the subsidiary SCAP should exert downward pressure on earnings during 3Q23-4Q23, which will be evident under the SG&A expense item.</li><li>However, the company anticipates that the impact of this situation peaked last quarter and will subsequently taper off in 4Q23 to 1Q24.</li><li>We maintain a Buy rating, with a fair value of Bt56.43.</li></ul>

The loss from repossessed motorcycles from the subsidiary SCAP should exert downward pressure on earnings during 3Q23-4Q23, which will be evident under the SG&A expense item.However, the company anticipates that the impact of this situation peaked last quarter and will subsequently taper off in 4Q23 to 1Q24.We maintain a Buy rating, with a fair value of Bt56.43.

Analyst Briefing Srisawad Corporation Plc. (SAWAD)

<ul><li>We initiate our coverage on SAWAD with a Buy rating and a 12M fair value of Bt56.43, based on the earnings yield and a required rate of return of 8.0%.</li><li>Our valuation metrics suggest strong prospects in all dimensions, including LT growth (three-year EPS growth at a 23.4% CAGR), while the current share price implies upside of 32% to the fair price.</li><li>SAWAD is poised to trade in alignment with its industry peers, as the sector has shifted into a new normal state under increased regulatory scrutiny.</li></ul>

We initiate our coverage on SAWAD with a Buy rating and a 12M fair value of Bt56.43, based on the earnings yield and a required rate of return of 8.0%.Our valuation metrics suggest strong prospects in all dimensions, including LT growth (three-year EPS growth at a 23.4% CAGR), while the current share price implies upside of 32% to the fair price.SAWAD is poised to trade in alignment with its industry peers, as the sector has shifted into a new normal state under increased regulatory scrutiny.

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

East Money Information / Equity Bottom-Up

<div><div><div><div><ul><li>As a leading online financial service provider in China, East Money Information continued to gain market shares from traditional financial institutions and delivered strong revenue and profit growth amid gloomy market environment, outperforming the industry.</li><li>Upon the completion of conversion of RMB 16bn convertible bonds in 1H22, the company inserted the capital to its brokerage subsidiary, Eastmoney Securities Co. Ltd, strengthening its capital position and capabilities in delivering business growth in margin trading and security lending segments.</li><li>With a strengthened capital base, we look positive on potentials of Eastmoney Securities Co. Ltd in support of robust growth among intense competitions. </li></ul></div></div></div></div><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

As a leading online financial service provider in China, East Money Information continued to gain market shares from traditional financial institutions and delivered strong revenue and profit growth amid gloomy market environment, outperforming the industry.Upon the completion of conversion of RMB 16bn convertible bonds in 1H22, the company inserted the capital to its brokerage subsidiary, Eastmoney Securities Co. Ltd, strengthening its capital position and capabilities in delivering business growth in margin trading and security lending segments.With a strengthened capital base, we look positive on potentials of Eastmoney Securities Co. Ltd in support of robust growth among intense competitions. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

East Money Information (300059 CH) – Strengthened capital in support of robust growth

China

East Money Information Co., Ltd. operates online financial information platform.  The Company's products include internet advertising and financial data.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

East Money Information (300059 CH)

Transitioning to High-Quality Growth

We are overweight the non-bank sector, underpinned by projected earnings growth at a 15% CAGR in 2023-2025E. KTX views that the non-bank sector is...

Krungthai XSpring

Road to Recovery During the Remainder of the Year

The finance stocks under our coverage reported a combined net profit of Bt4.27bn in 1Q24, growing 4.7% YoY and 11.2% QoQ. We expect the operating...

Krungthai XSpring

Analyst Briefing Srisawad Corporation Plc. (SAWAD)

The loss from repossessed motorcycles from the subsidiary SCAP should exert downward pressure on earnings during 3Q23-4Q23, which will be evident...

Krungthai XSpring

Srisawad Corporation SAWAD

We initiate our coverage on SAWAD with a Buy rating and a 12M fair value of Bt56.43, based on the earnings yield and a required rate of return of...

Krungthai XSpring

East Money Information (300059 CH) – Strengthened capital in support of robust growth

With a strengthened capital base, we look positive on potentials of Eastmoney Securities Co. Ltd in support of robust growth among intense...

CMB International

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)