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

<ul><li>Technically, the SET Index is expected to increase, with the resistance at 1,395/1,404 points (10-day EMA) and the support at 1,373/1,366 points.</li><li>The results of the MSCI quarterly review will be announced tonight (i.e., Wednesday morning of November 11, 2023).</li><li>While US inflation in October may exhibit a slowdown, this development has already been factored into market expectations.</li></ul>

Technically, the SET Index is expected to increase, with the resistance at 1,395/1,404 points (10-day EMA) and the support at 1,373/1,366 points.The results of the MSCI quarterly review will be announced tonight (i.e., Wednesday morning of November 11, 2023).While US inflation in October may exhibit a slowdown, this development has already been factored into market expectations.

Krungthai XSpring Zoom Eng. November 14, 2023

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

Electricity Generating / Equity Bottom-Up

<ul>
<li>Maintain BUY rating with a target price of Bt220 derived from DCF, implying 9.5xPE’22E. Despite reported net loss of Bt777m in 2Q22 due to unrealized losses from FX and derivative</li>
<li>Earnings dragged by Paju and FX losses in 2Q22 EGCOreported a net loss of Bt777m in 2Q22,the first time loss in the past nine quarters which was dragged by unrealized </li>
<li>Meanwhile, its 2Q22 recurring profit stood at Bt3.2bn (17% YoY, -29% QoQ), which came in line with our expectations. The QoQ core earnings drop was caused by lower electricity sales </li>
</ul>


Maintain BUY rating with a target price of Bt220 derived from DCF, implying 9.5xPE’22E. Despite reported net loss of Bt777m in 2Q22 due to unrealized losses from FX and derivative
Earnings dragged by Paju and FX losses in 2Q22 EGCOreported a net loss of Bt777m in 2Q22,the first time loss in the past nine quarters which was dragged by unrealized 
Meanwhile, its 2Q22 recurring profit stood at Bt3.2bn (17% YoY, -29% QoQ), which came in line with our expectations. The QoQ core earnings drop was caused by lower electricity sales 


<ul><li>The SET Index is expected to move sideways, with the resistance at 1,650/1,658 points and the support at 1,630/1,615 points (10/25-day EMA).</li><li>We recommend trading buy on CRC, TFG and BDMS.</li><li>Technically, the index may swing in the range of 1,620 points (200-day EMA) before a clear direction becomes apparent, but the uptrend momentum will be maintained if it manages to close above 1,620 points.</li></ul>

The SET Index is expected to move sideways, with the resistance at 1,650/1,658 points and the support at 1,630/1,615 points (10/25-day EMA).We recommend trading buy on CRC, TFG and BDMS.Technically, the index may swing in the range of 1,620 points (200-day EMA) before a clear direction becomes apparent, but the uptrend momentum will be maintained if it manages to close above 1,620 points.

<ul>
<li>The analyst meeting came out in a positive tone.The solid 2022 earnings outlook, decent dividend yield and lowering ESG concerns from transition to clean energy should support the stock performance.</li>
<li>Expect 2Q recurring profit to remain weak and recover thereafter, following seasonality of Paju ES, (49% stake, 1.8GWe).</li>
<li>The 2022 outlook looks solid from normalizing power plant operation (recovering demand)after COVID1-19 impact. Also,we see upside from new project acquisition as the company target to add 1.0GWe to portfolio</li>
</ul>


The analyst meeting came out in a positive tone.The solid 2022 earnings outlook, decent dividend yield and lowering ESG concerns from transition to clean energy should support the stock performance.
Expect 2Q recurring profit to remain weak and recover thereafter, following seasonality of Paju ES, (49% stake, 1.8GWe).
The 2022 outlook looks solid from normalizing power plant operation (recovering demand)after COVID1-19 impact. Also,we see upside from new project acquisition as the company target to add 1.0GWe to portfolio


EGCO: Clean Energy Transition to Relegate ESG Concerns

<ul>
<li>Yesterday analyst meeting came out in a positive tone.We maintain the BUY call based on a target price of Bt220.0 derived using DCF methodology (WACC 9.8%, TG 1%), implying 11.0xPE’22E.</li>
<li>Expect the 1Q22 recurring profit to improve YoY and QoQ on the back of profit recognition from investments in Linden, APEX (USA, 2Q-4Q21). Moreover, seasonal better electricity sales should offset</li>
<li>The company maintains the CAPEX plan of Bt30bn for 2022, targeting new renewable energy project additions. We expect EGCO to add around 1,000MW to portfolio in 2022 </li>
</ul>


Yesterday analyst meeting came out in a positive tone.We maintain the BUY call based on a target price of Bt220.0 derived using DCF methodology (WACC 9.8%, TG 1%), implying 11.0xPE’22E.
Expect the 1Q22 recurring profit to improve YoY and QoQ on the back of profit recognition from investments in Linden, APEX (USA, 2Q-4Q21). Moreover, seasonal better electricity sales should offset
The company maintains the CAPEX plan of Bt30bn for 2022, targeting new renewable energy project additions. We expect EGCO to add around 1,000MW to portfolio in 2022 


EGCO: Undemanding Valuation and Bright 2022 Outlook

Thailand

Electricity Generating Public Company Limited (EGCO Group) is an independent power producer and energy-related business operator. It generates electricity from various fuel sources, including fossil fuels and renewable energy, and provides maintenance, engineering, and construction services for power plants and other industries. The company is headquartered in Bangkok, Thailand, and was founded on May 12, 1992.

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

Electricity Generating (EGCO TB)

Krungthai XSpring Zoom Eng. November 14, 2023

Technically, the SET Index is expected to increase, with the resistance at 1,395/1,404 points (10-day EMA) and the support at 1,373/1,366...

Krungthai XSpring

EGCO : Better 2H22 Outlook

Maintain BUY rating with a target price of Bt220 derived from DCF, implying 9.5xPE’22E. Despite reported net loss of Bt777m in 2Q22 due to...

Pi Securities PCL, Thailand

Market Outlook and Recommendations

The SET Index is expected to move sideways, with the resistance at 1,650/1,658 points and the support at 1,630/1,615 points (10/25-day EMA). We...

Krungthai XSpring

EGCO: Clean Energy Transition to Relegate ESG Concerns

The analyst meeting came out in a positive tone. The solid 2022 earnings outlook, decent dividend yield and lowering ESG concerns from transition...

Pi Securities PCL, Thailand

EGCO: Undemanding Valuation and Bright 2022 Outlook

Yesterday analyst meeting came out in a positive tone. We maintain the BUY call based on a target price of Bt220.0 derived using DCF methodology...

Pi Securities PCL, Thailand

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)