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

Central Retail Corporation / Equity Bottom-Up

<ul><li>We suggest cutting losses on HANA as the negative return as fallen to our threshold for loss stopping (return: -6.9%).</li><li>We add CRC to the portfolio in response to the expectation that the 2Q23E net profit increased by 43.7% YoY to Bt2.14bn on the back of the recovery of consumer spending and tourism.</li></ul>

We suggest cutting losses on HANA as the negative return as fallen to our threshold for loss stopping (return: -6.9%).We add CRC to the portfolio in response to the expectation that the 2Q23E net profit increased by 43.7% YoY to Bt2.14bn on the back of the recovery of consumer spending and tourism.

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

<ul>
<li>We downgrade to HOLD and lower our TP to Bt47.75(-9% from previous TP),based on 18.4xPE’23E (average of 5-year trading history). Analyst meeting came with a slightly positive tone. Management expects</li>
<li>Analyst meeting details Management remains cautious of the recession further impacting the mobile.WhileRFID and automotive segments are currently stable they expect high interest rates will impact demand in those segments</li>
<li>However,management believes that the additional capacity in their U.S.factory and the new Korean factory will help offset the downturn from the recession as production will begin to ramp-up by 1Q23.</li>
</ul>


We downgrade to HOLD and lower our TP to Bt47.75(-9% from previous TP),based on 18.4xPE’23E (average of 5-year trading history). Analyst meeting came with a slightly positive tone. Management expects
Analyst meeting details Management remains cautious of the recession further impacting the mobile.WhileRFID and automotive segments are currently stable they expect high interest rates will impact demand in those segments
However,management believes that the additional capacity in their U.S.factory and the new Korean factory will help offset the downturn from the recession as production will begin to ramp-up by 1Q23.


HANA : Recession Should Impact 23E Earnings

<ul>
<li>We maintain BUY with TP of Bt52.50 based on 21.3xPE’1H23E (+1S.D. of 10-year trading history).3Q22 earnings was at Bt417m(-26% YoY, +71% QoQ)due to large FX and derivative losses worth Bt423m</li>
<li>3Q22 net profit suffered but core remains intact Its 3Q22 earnings was at Bt417m (-26% YoY,+71% QoQ) due to large FX and derivative losses worth Bt423m. These losses are likely </li>
<li>Stripping out FX and derivative losses, core profit stood at Bt840m (+20% YoY, +41% QoQ).Both YoY and QoQ increase was led by revenue growth, but QoQ growth was further supported</li>
</ul>


We maintain BUY with TP of Bt52.50 based on 21.3xPE’1H23E (+1S.D. of 10-year trading history).3Q22 earnings was at Bt417m(-26% YoY, +71% QoQ)due to large FX and derivative losses worth Bt423m
3Q22 net profit suffered but core remains intact Its 3Q22 earnings was at Bt417m (-26% YoY,+71% QoQ) due to large FX and derivative losses worth Bt423m. These losses are likely 
Stripping out FX and derivative losses, core profit stood at Bt840m (+20% YoY, +41% QoQ).Both YoY and QoQ increase was led by revenue growth, but QoQ growth was further supported


HANA : 3Q22 Earnings Impacted by FX Items

<ul>
<li>We maintain BUY but cut TP by 9% to Bt52.50 based on 21.3xPE’1H23E (+1S.D.of 5-year average trading) to reflect more cautious view on its earnings growth in 2H22 and 2023. </li>
<li>Lower USD sales but improving gross margin in2Q22Weak 2Q22 USD sales at US$186m (-4%YoY,flat QoQ)was caused by waning demand for PC and Mobile PCBs and ICs (~30%of HANA’s total sales)</li>
<li>Gross margin expansion QoQ to 13.7% in 2Q22 (-3.0ppts YoY,+2.9ppts QoQ) was caused by favorable exchange rates and economies of scale.We share management’s  belief that the margin is unsustainable </li>
</ul>


We maintain BUY but cut TP by 9% to Bt52.50 based on 21.3xPE’1H23E (+1S.D.of 5-year average trading) to reflect more cautious view on its earnings growth in 2H22 and 2023. 
Lower USD sales but improving gross margin in2Q22Weak 2Q22 USD sales at US$186m (-4%YoY,flat QoQ)was caused by waning demand for PC and Mobile PCBs and ICs (~30%of HANA’s total sales)
Gross margin expansion QoQ to 13.7% in 2Q22 (-3.0ppts YoY,+2.9ppts QoQ) was caused by favorable exchange rates and economies of scale.We share management’s  belief that the margin is unsustainable 


<ul>
<li>We maintain BUY with TP of Bt57.50 based on 21.3xPE’22E(+1S.D. of 5-year trading history).2Q22 net profit of Bt244m (-67% YoY,-33% QoQ) was under our expectations due to large FX losses.</li>
<li>2Q22 result below expectation but unlikely an issue Net profit was at Bt244m(-67% YoY,-33%QoQ).Both YoY and QoQ declined due to FX losses. Stripping FX losses, core profit was at Bt597m </li>
<li>Revenue was at Bt6.4bn (+5% YoY, +5% QoQ). QoQ and YoY growth was mainly due to Baht depreciation. QoQ also grew due to growth in IC Thailand segment.</li>
</ul>


We maintain BUY with TP of Bt57.50 based on 21.3xPE’22E(+1S.D. of 5-year trading history).2Q22 net profit of Bt244m (-67% YoY,-33% QoQ) was under our expectations due to large FX losses.
2Q22 result below expectation but unlikely an issue Net profit was at Bt244m(-67% YoY,-33%QoQ).Both YoY and QoQ declined due to FX losses. Stripping FX losses, core profit was at Bt597m 
Revenue was at Bt6.4bn (+5% YoY, +5% QoQ). QoQ and YoY growth was mainly due to Baht depreciation. QoQ also grew due to growth in IC Thailand segment.


Thailand

Hana Microelectronics engages in the manufacture and trading of electronic components, providing printed circuit board assemblies, integrated circuit assemblies and tests, and LED packaging and test services. It also offers electronics manufacturing and outsourced semiconductor assembly and testing services for various components. The company was founded in 1978 and is headquartered in Bangkok, Thailand.

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Hana Microelectronics (HANA TB)

Big Cap Tactical Picks

We suggest cutting losses on HANA as the negative return as fallen to our threshold for loss stopping (return: -6.9%). We add CRC to the portfolio...

Krungthai XSpring

HANA : Recession Should Impact 23E Earnings

We downgrade to HOLD and lower our TP to Bt47.75 (-9% from previous TP), based on 18.4xPE’23E (average of 5-year trading history). Analyst meeting...

Pi Securities PCL, Thailand

HANA : 3Q22 Earnings Impacted by FX Items

We maintain BUY with TP of Bt52.50 based on 21.3xPE’1H23E (+1S.D. of 10-year trading history). 3Q22 earnings was at Bt417m (-26% YoY, +71% QoQ) due...

Pi Securities PCL, Thailand

HANA : Weaker Outlook on 2H22

We maintain BUY but cut TP by 9% to Bt52.50 based on 21.3xPE’1H23E (+1S.D. of 5-year average trading) to reflect more cautious view on its earnings...

Pi Securities PCL, Thailand

HANA : Core Earnings Should Grow in 2H22

We maintain BUY with TP of Bt57.50 based on 21.3xPE’22E (+1S.D. of 5-year trading history). 2Q22 net profit of Bt244m (-67% YoY, -33% QoQ) was...

Pi Securities PCL, Thailand

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