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>We maintain an Outperform rating, based on the earnings yield method, with a required rate of return of 14.4%.</li><li>The valuation metrics indicate potential upside of 13.4% to the fair price.</li><li>The normalization of credit costs will continue to support earnings growth; KBANK's EPS is expected to show a CAGR of 9.5% in 2024- 26E. </li></ul>

We maintain an Outperform rating, based on the earnings yield method, with a required rate of return of 14.4%.The valuation metrics indicate potential upside of 13.4% to the fair price.The normalization of credit costs will continue to support earnings growth; KBANK's EPS is expected to show a CAGR of 9.5% in 2024- 26E. 

Kasikornbank - 2Q24E Net Profit Growth YoY and QoQ

<ul><li>We initiate our coverage on KBANK with an Outperform rating and a 12M FV of Bt142.37, based on the earnings yield and a required return of 14.4%.</li><li>The valuation metrics suggest that the current share price implies 14.4% potential upside to the fair value.</li><li>The normalization of credit costs will boost the EPS growth for KBANK to an expected CAGR of 9.5% in 2024-2026E. Meanwhile, the tactical risk is neutral</li></ul>

We initiate our coverage on KBANK with an Outperform rating and a 12M FV of Bt142.37, based on the earnings yield and a required return of 14.4%.The valuation metrics suggest that the current share price implies 14.4% potential upside to the fair value.The normalization of credit costs will boost the EPS growth for KBANK to an expected CAGR of 9.5% in 2024-2026E. Meanwhile, the tactical risk is neutral

Kasikornbank - On the Way to Normalized Credit Costs

Product Marketing Manager, Criat

Raghav Chandra Mathur

Product Marketing Manager

Next-Generation Credit Analytics Provider

Criat

Criat specializes in new-generation data-driven credit analytics. Leveraging our industry-leading DeepCredit analytical technologies, we produce daily-updated forward-looking credit assessment and valuation to help financial institutions stay ahead of risks. Coupled with use-case-driven applications, we extract insights, answer questions and enable smarter credit decisions.

Thematic (Sector/Industry)

<ul><li>The strong showing of economic data from the US for the first three months of 2024 has spurred bets that the Federal Reserve’s is going to delay cutting rates towards the latter half of this year.</li><li>The narrative surrounding ‘imminent’ rate cuts that dominated market perception near the end of last year has been thwarted by the Fed’s chair Jerome Powell suggesting that rates are likely to remain elevated, without the market completely discounting the possibility of further rate hikes.</li><li>The immediate fallout from the higher-than-expected March inflation figures led to a systematic drop in Asian currencies, especially for some ASEAN based currencies, such as the Malaysian Ringgit, that have already been embattled by weakening currency against the dollar since the start of this year.</li></ul>

The strong showing of economic data from the US for the first three months of 2024 has spurred bets that the Federal Reserve’s is going to delay cutting rates towards the latter half of this year.The narrative surrounding ‘imminent’ rate cuts that dominated market perception near the end of last year has been thwarted by the Fed’s chair Jerome Powell suggesting that rates are likely to remain elevated, without the market completely discounting the possibility of further rate hikes.The immediate fallout from the higher-than-expected March inflation figures led to a systematic drop in Asian currencies, especially for some ASEAN based currencies, such as the Malaysian Ringgit, that have already been embattled by weakening currency against the dollar since the start of this year.

Strong ASEAN Banks Poised Well to Face Uncertain Rate Outlook

<ul><li>Technically, the SET Index is expected to move sideways, with resistance at 1,384/1,392 points (50-day EMA/75-day EMA) and the support at 1,374/1,365 points.</li><li>Overall, the index is still moving in the downchannel range of 1,330-1,396 points.</li><li>As for the short-term picture, it is currently being determined whether the index will move in an uptrend to test the resistance of the range at 1,395 points and 1,405/1,416 points, respectively, or move in a downtrend to test the support of the range, with the minor support at 1,365/1,356 points, respectively. </li></ul>

Technically, the SET Index is expected to move sideways, with resistance at 1,384/1,392 points (50-day EMA/75-day EMA) and the support at 1,374/1,365 points.Overall, the index is still moving in the downchannel range of 1,330-1,396 points.As for the short-term picture, it is currently being determined whether the index will move in an uptrend to test the resistance of the range at 1,395 points and 1,405/1,416 points, respectively, or move in a downtrend to test the support of the range, with the minor support at 1,365/1,356 points, respectively. 

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

<ul><li>SGX welcomes 5 new Thai SDRs which allow investors to trade Thai blue-chip companies in the same way they would trade stocks listed in Singapore.</li><li>The 5 new SDRs are Advanced Info Service (SGX SDR stock code: TADD), Delta Electronics (TDED), Gulf Energy Development (TGED), Kasikornbank (TKKD) and Siam Cement Group (TSCD).</li><li>In total, the 8 Thai SDRs cover more than 40% of the SET50 benchmark and each of the 8 SDRs represent a different sector.</li></ul>

SGX welcomes 5 new Thai SDRs which allow investors to trade Thai blue-chip companies in the same way they would trade stocks listed in Singapore.The 5 new SDRs are Advanced Info Service (SGX SDR stock code: TADD), Delta Electronics (TDED), Gulf Energy Development (TGED), Kasikornbank (TKKD) and Siam Cement Group (TSCD).In total, the 8 Thai SDRs cover more than 40% of the SET50 benchmark and each of the 8 SDRs represent a different sector.

Expanded suite of 8 Thai SDRs tracking over 40% of Thailand’s SET50 Index

Thailand

Kasikornbank Public Company Limited provides commercial banking services including personal and commercial banking, international trade, as well as investment banking services, to its customers throughout Thailand.  The Bank has foreign branches in Los Angeles, Hong Kong, Cayman Islands, and Shenzhen; and representative offices in Shanghai, Beijing, and Kunmin.

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Kasikornbank (KBANK-R TB)

Kasikornbank - 2Q24E Net Profit Growth YoY and QoQ

We maintain an Outperform rating, based on the earnings yield method, with a required rate of return of 14.4%. The valuation metrics indicate...

Krungthai XSpring

Kasikornbank - On the Way to Normalized Credit Costs

We initiate our coverage on KBANK with an Outperform rating and a 12M FV of Bt142.37, based on the earnings yield and a required return of 14.4%.

Krungthai XSpring

Strong ASEAN Banks Poised Well to Face Uncertain Rate Outlook

The strong showing of economic data from the US for the first three months of 2024 has spurred bets that the Federal Reserve’s is going to delay...

Criat

KTX Zoom - April 3, 2024

Technically, the SET Index is expected to move sideways, with resistance at 1,384/1,392 points (50-day EMA/75-day EMA) and the support at 1,374...

Krungthai XSpring

Expanded suite of 8 Thai SDRs tracking over 40% of Thailand’s SET50 Index

SGX welcomes 5 new Thai SDRs which allow investors to trade Thai blue-chip companies in the same way they would trade stocks listed in...

Singapore Exchange Ltd (SGX)

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