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 are optimistic about the potential recoveries of global equity markets late this year, based on the expectation that the Fed will pause its interest rate hikes and that a bull flattening of the yield curve will occur when inflation slows down.</li><li>While US inflation may remain above the Fed’s target of 2%, this is likely to be due to a time-lag effect linked to housing prices and concerns over the risk of a US economic recession.</li><li>Therefore, we have revised down our US 10Y bond yield assumption to 3.3% (vs. 3.5% previously) and our Thai 10Y bond yield estimate to 3.0% (vs. 3.3%) for 4Q22E, based on a 12M forward EPS assumption for the SET at Bt106.27/share and an expected earnings yield of 6.2%.</li></ul>

We are optimistic about the potential recoveries of global equity markets late this year, based on the expectation that the Fed will pause its interest rate hikes and that a bull flattening of the yield curve will occur when inflation slows down.While US inflation may remain above the Fed’s target of 2%, this is likely to be due to a time-lag effect linked to housing prices and concerns over the risk of a US economic recession.Therefore, we have revised down our US 10Y bond yield assumption to 3.3% (vs. 3.5% previously) and our Thai 10Y bond yield estimate to 3.0% (vs. 3.3%) for 4Q22E, based on a 12M forward EPS assumption for the SET at Bt106.27/share and an expected earnings yield of 6.2%.

<ul><li>We suggest selling JMART after we recommended buying it yesterday because the stock has fallen out of our top rankings (with the return at +0.51%).</li><li>However, long-term investors may continue holding it, with the loss-stopping point at Bt48.00.</li><li>We add KKP to the portfolio, as the stock is likely to offer a YoY increase in the dividend payment for its1H22performance, which will be made in September, after it reported 1H22 earnings of Bt4,089mn, +45.1% YoY.</li></ul>

We suggest selling JMART after we recommended buying it yesterday because the stock has fallen out of our top rankings (with the return at +0.51%).However, long-term investors may continue holding it, with the loss-stopping point at Bt48.00.We add KKP to the portfolio, as the stock is likely to offer a YoY increase in the dividend payment for its1H22performance, which will be made in September, after it reported 1H22 earnings of Bt4,089mn, +45.1% YoY.

Thailand

Kiatnakin Bank Public Company Limited provides commercial banking services including commercial, developmental, consumer, hire-purchase, and mortgage financing to its customers in Thailand. The Company also provides securities brokerage and investment advisory services.

Kiatnakin Bank (KKP TB)

4Q22E Market Outlook: SET Haven

We are optimistic about the potential recoveries of global equity markets late this year, based on the expectation that the Fed will pause its...

Krungthai XSpring

Big Cap Tactical Picks - August 9, 2022

We suggest selling JMART after we recommended buying it yesterday because the stock has fallen out of our top rankings (with the return at +0.51%).

Krungthai XSpring