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>The projected outlook for agricultural and food businesses in 2Q24E indicates a notable recovery both YoY and QoQ.</li><li>In particular, major meat operators, including those engaged in the swine business in Vietnam, are anticipated to shift from losses in 2Q23 to profits, with further growth expected from their reported better-than- expected operating results in 1Q24.</li><li>Consequently, we have revised our profit forecasts upward for CPF, TFG and SAPPE. While acknowledging the sector's rebound in operating results, driving up share prices, we maintain a Neutral rating due to stretched valuations, as indicated by the earnings yield method. </li></ul>

The projected outlook for agricultural and food businesses in 2Q24E indicates a notable recovery both YoY and QoQ.In particular, major meat operators, including those engaged in the swine business in Vietnam, are anticipated to shift from losses in 2Q23 to profits, with further growth expected from their reported better-than- expected operating results in 1Q24.Consequently, we have revised our profit forecasts upward for CPF, TFG and SAPPE. While acknowledging the sector's rebound in operating results, driving up share prices, we maintain a Neutral rating due to stretched valuations, as indicated by the earnings yield method. 

Agri & Food: Momentum in 2Q24E Expected to Grow YoY and QoQ

CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Quantamental Investing to beat Benchmarks

A. Stotz Investment Research

We pick stocks. We construct portfolios. All our effort is focused on how to better pick stocks and construct portfolios. We serve fund management companies, family offices, and high net worth individuals.

<ul>
<li>We highlight 14 stocks in Thailand that look interesting to us based on our FVMR Methodology</li>
<li>Portfolio changes: Six stocks remain, eight new join the fray</li>
<li>Since inception, it has gained 121% versus the SET 100 Index’s return of 20%</li>
</ul>


We highlight 14 stocks in Thailand that look interesting to us based on our FVMR Methodology
Portfolio changes: Six stocks remain, eight new join the fray
Since inception, it has gained 121% versus the SET 100 Index’s return of 20%


The Stocks to Own in Thailand – Vol. 45

Macroeconomics

<ul><li>Exports in April returned to growth, increasing by 6.8% YoY, or 11.4% YoY when excluding oil, gold, and military-related products.</li><li>The Ministry of Commerce revealed that the trade balance in April was in deficit for the fourth consecutive month, deepening to USD1.64bn (vs. March's deficit at -USD1.16bn) as a result of high growth in imports at +8.3% YoY to USD24.92bn.</li><li>We maintain our recommendation for stocks related to upstream agricultural export products, such as rice and rubber, as well as processed agricultural products like pet food, canned food, and processed chicken.</li></ul>

Exports in April returned to growth, increasing by 6.8% YoY, or 11.4% YoY when excluding oil, gold, and military-related products.The Ministry of Commerce revealed that the trade balance in April was in deficit for the fourth consecutive month, deepening to USD1.64bn (vs. March's deficit at -USD1.16bn) as a result of high growth in imports at +8.3% YoY to USD24.92bn.We maintain our recommendation for stocks related to upstream agricultural export products, such as rice and rubber, as well as processed agricultural products like pet food, canned food, and processed chicken.

Cross Asset Strategy

<ul><li>Technically, we expect the SET Index to move sideways down, with the support at 1,363/1,354 points (1/2 and 1/3 of the Fibonacci range of 1,325-1,404 points) and the resistance at 1,375/1,380 points (50-day EMA/75-day EMA).</li><li>Overall, the index is still moving in an upward trend toward testing the resistance of the downchannel range at 1,394/1,404 points.</li><li>Today, there is a chance that the index will weaken and test the support; there would be a new sell signal if it sinks below the key support at 1,350 points.</li></ul>

Technically, we expect the SET Index to move sideways down, with the support at 1,363/1,354 points (1/2 and 1/3 of the Fibonacci range of 1,325-1,404 points) and the resistance at 1,375/1,380 points (50-day EMA/75-day EMA).Overall, the index is still moving in an upward trend toward testing the resistance of the downchannel range at 1,394/1,404 points.Today, there is a chance that the index will weaken and test the support; there would be a new sell signal if it sinks below the key support at 1,350 points.

Technical Analysis

<ul><li>The index has continued to move sideways, with the candlestick showing a slight positive signal and the MACD edging closer to the zero line, while the RSI has returned to above the 50 level.</li><li>These indicators suggest that the index is poised to climb, potentially testing the resistance at 1,378 points.</li><li>Although we believe the index will move sideways, it has the potential to test the resistance.</li></ul>

The index has continued to move sideways, with the candlestick showing a slight positive signal and the MACD edging closer to the zero line, while the RSI has returned to above the 50 level.These indicators suggest that the index is poised to climb, potentially testing the resistance at 1,378 points.Although we believe the index will move sideways, it has the potential to test the resistance.

Recommendation: Buy on Weakness, Sell on Strength

Thailand

GFPT Public Company Limited operates a fully integrated poultry business, encompassing feed mills, breeder and broiler farms, hatcheries, chicken evisceration, and processed food production. The company produces and distributes fresh, frozen, and cooked chicken products, as well as land and aquatic animal feed, for both domestic and international markets. GFPT was founded in 1981 and is headquartered in Bangkok, Thailand.

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GFPT (GFPT TB)

Agri & Food: Momentum in 2Q24E Expected to Grow YoY and QoQ

In particular, major meat operators, including those engaged in the swine business in Vietnam, are anticipated to shift from losses in 2Q23 to profits

Krungthai XSpring

The Stocks to Own in Thailand – Vol. 45

We highlight 14 stocks in Thailand that look interesting to us based on our FVMR Methodology. Portfolio changes: Six stocks remain, eight new join...

A. Stotz Investment Research

Economic Update – Exports & Imports

Exports in April returned to growth, increasing by 6.8% YoY, or 11.4% YoY when excluding oil, gold, and military-related products. The Ministry of...

Krungthai XSpring

Today's Dominant Ideas

Technically, we expect the SET Index to move sideways down, with the support at 1,363/1,354 points (1/2 and 1/3 of the Fibonacci range of...

Krungthai XSpring

Recommendation: Buy on Weakness, Sell on Strength

The index has continued to move sideways, with the candlestick showing a slight positive signal and the MACD edging closer to the zero line, while...

Krungthai XSpring

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