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 recommend buying MEGA and MAJOR.</li><li>MEGA’s share price has rebounded by more than 5% over the past two weeks on the market’s expectations for a limited impact from Myanmar’s government ordering the suspension of loan repayments in foreign currencies.</li><li>The firm’s 2022E earnings are forecast to grow 8.68% YoY to Bt2,116mn, driven by the depreciation of the baht, the development of new projects and expansion to new markets with low competition.</li></ul>

We recommend buying MEGA and MAJOR.MEGA’s share price has rebounded by more than 5% over the past two weeks on the market’s expectations for a limited impact from Myanmar’s government ordering the suspension of loan repayments in foreign currencies.The firm’s 2022E earnings are forecast to grow 8.68% YoY to Bt2,116mn, driven by the depreciation of the baht, the development of new projects and expansion to new markets with low competition.

Cross Asset Strategy

<ul><li>We recommend selling KKP (with the return since it was added to the portfolio at 0.7%) after we added it for just one day, as the stock has fallen out of our top rankings.</li><li>However, long-term investors may consider holding it and stopping losses at Bt64.25.</li><li>We have added EA, as the stock is expected to benefit from the potential growth in the EV industry after it acquired a 23.63% share in BYD, which provides electric bus services.</li></ul>

We recommend selling KKP (with the return since it was added to the portfolio at 0.7%) after we added it for just one day, as the stock has fallen out of our top rankings.However, long-term investors may consider holding it and stopping losses at Bt64.25.We have added EA, as the stock is expected to benefit from the potential growth in the EV industry after it acquired a 23.63% share in BYD, which provides electric bus services.

Big Cap Tactical Picks - Highlights of the Day

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

BCPG, GUNKUL, GULF top pick growth stocks<ul>
<li>
Earnings upcycle in 2021: We expect BCPG, GULF and GUNKUL to achieve 15 to 30% net profit growth during 2021 on the back 12 to 30% power generation capacity expansion in 2020-21 period.</li>
<li>
Declining gas price to support SPP performance: The industrial user power sales of SPP players BGRIM, GPSC and GULF (accounting 10 to 20% of the revenue) has rebound to pre – COVID 19 levels as of 4Q20.  We expect the declining gas cost (-10% YoY) will help in revamping the GPM and support the sector performance.</li>
</ul>EGCO, RATCH top pick value stocks<ul>
<li>
Cheap valuation: The stock price of EGCO and RATCH faced 70% and 30% fall in 2020 respectively. The stocks are trading very cheap at 9 to 13x PE’21E and having the companies already overcome the COVID-19 impact we believe the price correction has created an investment opportunity.</li>
<li>
Decent dividend yield: We expect RATCH and EGCO to pay a decent dividend yield of 3.3 to 4.4% in 2021.</li>
</ul>Maintain HOLD rating on BGRIM, EA and GPSC<ul><li>We have a positive view on BGRIM and GPSC as the SPP players will benefit from declining gas price. However, due to limit upside from current share price we maintain the HOLD rating. We recommend to HOLD EA, as the stock performance will depend on new EV-ESS business success and valuation demands.</li></ul>

BCPG, GUNKUL, GULF top pick growth stocks

Earnings upcycle in 2021: We expect BCPG, GULF and GUNKUL to achieve 15 to 30% net profit growth during 2021 on the back 12 to 30% power generation capacity expansion in 2020-21 period.

Declining gas price to support SPP performance: The industrial user power sales of SPP players BGRIM, GPSC and GULF (accounting 10 to 20% of the revenue) has rebound to pre – COVID 19 levels as of 4Q20.  We expect the declining gas cost (-10% YoY) will help in revamping the GPM and support the sector performance.
EGCO, RATCH top pick value stocks

Cheap valuation: The stock price of EGCO and RATCH faced 70% and 30% fall in 2020 respectively. The stocks are trading very cheap at 9 to 13x PE’21E and having the companies already overcome the COVID-19 impact we believe the price correction has created an investment opportunity.

Decent dividend yield: We expect RATCH and EGCO to pay a decent dividend yield of 3.3 to 4.4% in 2021.
Maintain HOLD rating on BGRIM, EA and GPSCWe have a positive view on BGRIM and GPSC as the SPP players will benefit from declining gas price. However, due to limit upside from current share price we maintain the HOLD rating. We recommend to HOLD EA, as the stock performance will depend on new EV-ESS business success and valuation demands.

Thailand Power Sector: Overweight-Bright 2021 Performance

Equity Bottom-Up

<ul><li>We recommend taking profit on AWC after the return reached the threshold of 25% and selling KKP (return: +1.46%) because the stock has fallen out of our top rankings.</li><li>We also suggest buying EA, as its earnings outlook remains bright.</li><li>The consensus estimate calls for 2022E EPS to grow by 15.09% to Bt2.19, driven by the planned delivery of around 1,200 electric buses and the planned launches of electric trucks.</li></ul>

We recommend taking profit on AWC after the return reached the threshold of 25% and selling KKP (return: +1.46%) because the stock has fallen out of our top rankings.We also suggest buying EA, as its earnings outlook remains bright.The consensus estimate calls for 2022E EPS to grow by 15.09% to Bt2.19, driven by the planned delivery of around 1,200 electric buses and the planned launches of electric trucks.

<ul>
<li>Last week analyst meeting came out in a neutral tone.We maintain the HOLD rating due to demanding valuation.Our target price of Bt80.0, is derived using SOTP methodology, implying 43x PE’22E.</li>
<li>Expect the 2Q22 earnings to grow both YoY and QoQ, on the back of 1) higher EV sales 2) better solar power plant operation and 3) improving biodiesel sales.</li>
<li>The company has secured order for 87 E-buses to be delivered in 2Q22 to Lotte group.And further target a sales of 1,000 buses in 2H22, and 2,500 to 3,000 units</li>
</ul>


Last week analyst meeting came out in a neutral tone.We maintain the HOLD rating due to demanding valuation.Our target price of Bt80.0, is derived using SOTP methodology, implying 43x PE’22E.
Expect the 2Q22 earnings to grow both YoY and QoQ, on the back of 1) higher EV sales 2) better solar power plant operation and 3) improving biodiesel sales.
The company has secured order for 87 E-buses to be delivered in 2Q22 to Lotte group.And further target a sales of 1,000 buses in 2H22, and 2,500 to 3,000 units


Thailand

Energy Absolute is a leading Thai company engaged in the manufacture and distribution of crude palm oil, biodiesel, and glycerol products. The company also operates renewable power plants (solar and wind), manufactures and distributes lithium-ion batteries and electric vehicles (e.g., buses, cars, ferries), and provides electric vehicle charging station services. It was founded in 2006 and is headquartered in Bangkok, Thailand.

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Energy Absolute (EA TB)

Big Cap Tactical Picks - Aug 3, 2022

MEGA’s share price has rebounded by more than 5% over the past two weeks on the market’s expectations for a limited impact from Myanmar’s government

Krungthai XSpring

Big Cap Tactical Picks - Highlights of the Day

We recommend selling KKP (with the return since it was added to the portfolio at 0.7%) after we added it for just one day, as the stock has fallen...

Krungthai XSpring

Thailand Power Sector: Overweight-Bright 2021 Performance

Power Sector: Overweight-Bright 2021 sector performance. BCPG, GUNKUL, GULF top pick growth stocks. EGCO, RATCH top pick value stocks

Pi Securities PCL, Thailand

Big Cap Tactical Picks

We recommend taking profit on AWC after the return reached the threshold of 25% and selling KKP (return: +1.46%) because the stock has fallen out...

Krungthai XSpring

EA: Awaiting EV & ESS Business Profit

Last week analyst meeting came out in a neutral tone. We maintain the HOLD rating due to demanding valuation. Our target price of Bt80.0, is...

Pi Securities PCL, Thailand

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