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>The 4Q23 core profit was 5% below the expectation, but the 2023 earnings were in line with the forecast.</li><li>The sustained momentum of the GPM improvement over four consecutive quarters in 2023 underscores the company's effective management amid sales challenges stemming from diminished purchasing power in line with the prevailing economic conditions.</li><li>Our earnings projections are maintained.</li></ul>

The 4Q23 core profit was 5% below the expectation, but the 2023 earnings were in line with the forecast.The sustained momentum of the GPM improvement over four consecutive quarters in 2023 underscores the company's effective management amid sales challenges stemming from diminished purchasing power in line with the prevailing economic conditions.Our earnings projections are maintained.

Home Product Center - 4Q23 Earnings Were 5% Below the Forecast; 2023 Earnings Were in Line

Thematic (Sector/Industry)

<ul><li>The SET traded within a narrow range throughout the day, reflecting subdued sentiment attributed to the Chinese New Year festival.</li><li>Furthermore, with most Asian bourses closed, trading activity remained sluggish.</li><li>Large cap stocks experienced limited fluctuations, resulting in an index outlook devoid of clear signals. However, foreign investors turned to buy slightly.</li></ul>

The SET traded within a narrow range throughout the day, reflecting subdued sentiment attributed to the Chinese New Year festival.Furthermore, with most Asian bourses closed, trading activity remained sluggish.Large cap stocks experienced limited fluctuations, resulting in an index outlook devoid of clear signals. However, foreign investors turned to buy slightly.

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>Maintain BUY recommendation for HMPRO with a higher target price of Bt18 (Previous TP: Bt17).Our new target price reflects 2023 earnings upward revision by 6% to factor in higher gross </li>
<li>3Q22 slightly above our forecast HMPRO reported a net profit of Bt1.5bn in 3Q22 (+76%YoY, +1%QoQ). The 9M22 result accounted for 72% of our 2022E.</li>
<li>3Q22 revenue was at Bt16.3bn (+22%YoY, -2%QoQ), driven by 1) products sales increased to Bt15.9bn (+20.7%YoY) driven by a recovery in sales from tourism destination revenue generate from Homepro</li>
</ul>


Maintain BUY recommendation for HMPRO with a higher target price of Bt18 (Previous TP: Bt17).Our new target price reflects 2023 earnings upward revision by 6% to factor in higher gross 
3Q22 slightly above our forecast HMPRO reported a net profit of Bt1.5bn in 3Q22 (+76%YoY, +1%QoQ). The 9M22 result accounted for 72% of our 2022E.
3Q22 revenue was at Bt16.3bn (+22%YoY, -2%QoQ), driven by 1) products sales increased to Bt15.9bn (+20.7%YoY) driven by a recovery in sales from tourism destination revenue generate from Homepro


HMPRO : 3Q22 Earnings Slightly Above Our Forecast

<ul>
<li>Demand from housing renovation after flood and high season factor will support 4Q22 performance. We expect the company to report 3Q22 net profit at Bt1.45bn (+67%YoY, -4%QoQ). The significant YoY </li>
<li>Expect 3Q22 earnings recover strongly YoY Revenue in 3Q22 is expected to report at Bt16bn (+19%YoY, -4%QoQ) supported by home improvement sales, which should grow to Bt1.55bn (+18%YoY)</li>
<li>Gross profit margin in 3Q22 should expand YoY and QoQ to27% backed by heathier margin from sales at 25.9%from efficiency inventory management and better products mix due to lower sales </li>
</ul>


Demand from housing renovation after flood and high season factor will support 4Q22 performance. We expect the company to report 3Q22 net profit at Bt1.45bn (+67%YoY, -4%QoQ). The significant YoY 
Expect 3Q22 earnings recover strongly YoY Revenue in 3Q22 is expected to report at Bt16bn (+19%YoY, -4%QoQ) supported by home improvement sales, which should grow to Bt1.55bn (+18%YoY)
Gross profit margin in 3Q22 should expand YoY and QoQ to27% backed by heathier margin from sales at 25.9%from efficiency inventory management and better products mix due to lower sales 


HMPRO : Expect Strong 3Q22 Earnings to Outpace Peer

<ul>
<li>Maintain BUY recommendation for HMPRO with a target price of Bt17.Analyst meeting came with a slightly positive tone.We maintain our net profit growth projections of10% in 2022 and 7%in 2023. </li>
<li>2H22 outlook still intact HMPRO’s SSSG turned to positive at double digit growth in July 2022 from -1.1% in 2Q22, see on Pic3, page 3.</li>
<li>2H22, HMPRO plan to expand 6 stores (+5%YoY) comprise of one store for Homepro large store format and 5 stores for Mega home, see on Pic 1, Page2.</li>
</ul>


Maintain BUY recommendation for HMPRO with a target price of Bt17.Analyst meeting came with a slightly positive tone.We maintain our net profit growth projections of10% in 2022 and 7%in 2023. 
2H22 outlook still intact HMPRO’s SSSG turned to positive at double digit growth in July 2022 from -1.1% in 2Q22, see on Pic3, page 3.
2H22, HMPRO plan to expand 6 stores (+5%YoY) comprise of one store for Homepro large store format and 5 stores for Mega home, see on Pic 1, Page2.


Thailand

Home Product Center Public Company Limited is a retailer of building materials and home improvement products.

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Home Product Center (HMPRO TB)

Home Product Center - 4Q23 Earnings Were 5% Below the Forecast; 2023 Earnings Were in Line

Our valuation metrics indicate neutral views on the current fundamentals, long-term growth prospects, and tactical outlooks.

Krungthai XSpring

Technical Analysis - FEBRUARY 13, 2024

The SET traded within a narrow range throughout the day, reflecting subdued sentiment attributed to the Chinese New Year festival.

Krungthai XSpring

HMPRO : 3Q22 Earnings Slightly Above Our Forecast

Maintain BUY recommendation for HMPRO with a higher target price of Bt18 (Previous TP: Bt17). Our new target price reflects 2023 earnings upward...

Pi Securities PCL, Thailand

HMPRO : Expect Strong 3Q22 Earnings to Outpace Peer

Demand from housing renovation after flood and high season factor will support 4Q22 performance. We expect the company to report 3Q22 net profit at...

Pi Securities PCL, Thailand

HMPRO : Strong 3Q22 Performance Outlook

Maintain BUY recommendation for HMPRO with a target price of Bt17. Analyst meeting came with a slightly positive tone. We maintain our net profit...

Pi Securities PCL, Thailand

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