Thai Equity - Bottom-up - Equities, Pi Securities PCL, Thailand

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Thai Equity - Bottom-up - Equities

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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

Equity Bottom-Up

<ul>
<li>Upgrade to BUY (from HOLD) with a higher target price of Bt20.20. Our BUY call reflects its resilient balance sheet, higher ROE prospects and more attractive upside gain</li>
<li>Good 3Q22 results Net profit came in at Bt8.4bn in 3Q22, up 67% YoY (+1% QoQ), which was 10% higher than expected due to higher net interest income.</li>
<li>NIM continued to expand both YoY and QoQ at 2.7% due to higher earnings assets. The cost-to-income ratio increased QoQ to 45.3% (2Q22: 42.5%) given higher operating expenses.</li>
</ul>


Upgrade to BUY (from HOLD) with a higher target price of Bt20.20. Our BUY call reflects its resilient balance sheet, higher ROE prospects and more attractive upside gain
Good 3Q22 results Net profit came in at Bt8.4bn in 3Q22, up 67% YoY (+1% QoQ), which was 10% higher than expected due to higher net interest income.
NIM continued to expand both YoY and QoQ at 2.7% due to higher earnings assets. The cost-to-income ratio increased QoQ to 45.3% (2Q22: 42.5%) given higher operating expenses.


<ul>
<li>Maintain HOLD with a new target price of Bt17.30 (from Bt16.70).KTB’s net profit growth potential in 2023 is likely to decelerate ahead.For 2H22,we expect net profit to decline by 21% </li>
<li>Analyst meeting We were neutral about KTB's business outlook after attending the analyst meeting on 22 August.  Management upgraded 2022 loan growth targets to 4-5% YoY (from 3-4% earlier) </li>
<li>The NPL ratio would be below 3.5% by the end of 2022 (2Q22: 3.3%).Credit costs in 2H22 would not likely be similar to those in 1H22.Despite its stable asset quality</li>
</ul>


Maintain HOLD with a new target price of Bt17.30 (from Bt16.70).KTB’s net profit growth potential in 2023 is likely to decelerate ahead.For 2H22,we expect net profit to decline by 21% 
Analyst meeting We were neutral about KTB's business outlook after attending the analyst meeting on 22 August.  Management upgraded 2022 loan growth targets to 4-5% YoY (from 3-4% earlier) 
The NPL ratio would be below 3.5% by the end of 2022 (2Q22: 3.3%).Credit costs in 2H22 would not likely be similar to those in 1H22.Despite its stable asset quality


<ul>
<li>Downgrade to HOLD (from BUY) with a target price of Bt16.70. Our downgrade reflects limited upside gain as a rise in share price is largely priced strong 1Q22 performance </li>
<li>Quarterly earnings passed the peak level in 1Q22:Like other banks, KTB’s fundamentals have improved from the economic reopening and its resilient asset quality.</li>
<li>Positive sentiments from digital lottery ticket sales The Government Lottery Office (GLO) mentioned that more than 5m lottery tickets were sold through KTB’s Paotang G-wallet app.</li>
</ul>


Downgrade to HOLD (from BUY) with a target price of Bt16.70. Our downgrade reflects limited upside gain as a rise in share price is largely priced strong 1Q22 performance 
Quarterly earnings passed the peak level in 1Q22:Like other banks, KTB’s fundamentals have improved from the economic reopening and its resilient asset quality.
Positive sentiments from digital lottery ticket sales The Government Lottery Office (GLO) mentioned that more than 5m lottery tickets were sold through KTB’s Paotang G-wallet app.


<ul>
<li>Maintain BUY with a higher target price of Bt16.70. Our BUY call reflects steady net profit growth,resilient asset quality, and attractive valuation.Our valuation is derived from the Gordon growth model </li>
<li>Management maintained its key 2022 financial guidance. It affirmed that the KTB’s coverage ratio was high enough to withstand uncertainties and there was room to reduce provisions ahead.</li>
<li>We increased our net profit forecast by 5-9%for 2022-24 to reflect our lower provision estimates.We expect KTB’s net profit growth to be solid at 19%YoY in 2022 and continue rising</li>
</ul>


Maintain BUY with a higher target price of Bt16.70. Our BUY call reflects steady net profit growth,resilient asset quality, and attractive valuation.Our valuation is derived from the Gordon growth model 
Management maintained its key 2022 financial guidance. It affirmed that the KTB’s coverage ratio was high enough to withstand uncertainties and there was room to reduce provisions ahead.
We increased our net profit forecast by 5-9%for 2022-24 to reflect our lower provision estimates.We expect KTB’s net profit growth to be solid at 19%YoY in 2022 and continue rising


KTB: Steady Growth with Resilient Asset Quality

<ul>
<li>Upgrade BUY with a target price of Bt15.00. Our upgrade reflects an attractive upside gain,resilient asset quality,and potential credit costs reduction. Our valuation is derived from the Gordon growth model</li>
<li>Net profit in 1Q22 came in at Bt8.8bn (+57% YoY, +78% QoQ) and 37% higher than our expectation on lower-than-expected provisions.</li>
<li>Asset quality improved. The NPL ratio decreased to 3.3% in 1Q22 and the loan loss coverage ratio was higher to 173.6% to withstand uncertainty ahead.</li>
</ul>


Upgrade BUY with a target price of Bt15.00. Our upgrade reflects an attractive upside gain,resilient asset quality,and potential credit costs reduction. Our valuation is derived from the Gordon growth model
Net profit in 1Q22 came in at Bt8.8bn (+57% YoY, +78% QoQ) and 37% higher than our expectation on lower-than-expected provisions.
Asset quality improved. The NPL ratio decreased to 3.3% in 1Q22 and the loan loss coverage ratio was higher to 173.6% to withstand uncertainty ahead.


KTB: Attractive Valuation and Potential Credit Cost Reduction

Thailand

Krung Thai Bank Public Company Limited is a state-owned commercial bank based in Thailand, offering a comprehensive range of financial products and services. Its operations are segmented into Retail Banking, Corporate Banking, and Treasury and Investment, providing services like deposits, loans, credit cards, and e-banking solutions. The bank was founded on March 14, 1966, and is headquartered in Bangkok, Thailand.

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Krung Thai Bank (KTB-R TB)

KTB : More Moderate Growth Ahead

Upgrade to BUY (from HOLD) with a higher target price of Bt20.20. Our BUY call reflects its resilient balance sheet, higher ROE prospects, and more...

Pi Securities PCL, Thailand

KTB : Slower Growth Ahead

Maintain HOLD with a new target price of Bt17.30 (from Bt16.70). KTB’s net profit growth potential in 2023 is likely to decelerate ahead. For 2H22,...

Pi Securities PCL, Thailand

KTB: Limited Upside Gain Potential

Downgrade to HOLD (from BUY) with a target price of Bt16.70. Our downgrade reflects limited upside gain as a rise in share price is largely priced...

Pi Securities PCL, Thailand

KTB: Steady Growth with Resilient Asset Quality

Maintain BUY with a higher target price of Bt16.70.Our BUY call reflects steady net profit growth,resilient asset quality,and attractive...

Pi Securities PCL, Thailand

KTB: Attractive Valuation and Potential Credit Cost Reduction

Upgrade BUY with a target price of Bt15.00.Our upgrade reflects an attractive upside gain, resilient asset quality,and potential credit costs...

Pi Securities PCL, Thailand

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