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.

Cross Asset Strategy

<ul><li>The SET Index is expected to move sideways up, with the resistance at 1,630/1,635 points and the support at 1,611 (50-week EMA)/1,600 points.</li><li>We recommend trading buy on KCE, HANA and SAT.</li><li>Today's investment momentum is slightly positive in response to the Cabinet meeting today, in which it is expected to approve additional stimulus measures.</li></ul>

The SET Index is expected to move sideways up, with the resistance at 1,630/1,635 points and the support at 1,611 (50-week EMA)/1,600 points.We recommend trading buy on KCE, HANA and SAT.Today's investment momentum is slightly positive in response to the Cabinet meeting today, in which it is expected to approve additional stimulus measures.

<ul><li>Net Profit growth of 160 SET-listed firms forecast to average at +31.3% YoY and +21.5% QoQ</li><li>Retail, finance, food, media, tourism and transportation sectors projected to show YoY and QoQ growth</li><li>The SET may face profit taking as the positives, e.g., the Fed's softer stance and the upbeat view on 2Q22E earnings, have been priced in.</li></ul>

Net Profit growth of 160 SET-listed firms forecast to average at +31.3% YoY and +21.5% QoQRetail, finance, food, media, tourism and transportation sectors projected to show YoY and QoQ growthThe SET may face profit taking as the positives, e.g., the Fed's softer stance and the upbeat view on 2Q22E earnings, have been priced in.

Sell on Fact as Positives Already Absorbed

Thematic (Sector/Industry)

<ul><li>We recommend buying MEGA and MAJOR.</li><li>MEGA’s share price has rebounded by more than 5% over the past two weeks on the market’s expectations for a limited impact from Myanmar’s government ordering the suspension of loan repayments in foreign currencies.</li><li>The firm’s 2022E earnings are forecast to grow 8.68% YoY to Bt2,116mn, driven by the depreciation of the baht, the development of new projects and expansion to new markets with low competition.</li></ul>

We recommend buying MEGA and MAJOR.MEGA’s share price has rebounded by more than 5% over the past two weeks on the market’s expectations for a limited impact from Myanmar’s government ordering the suspension of loan repayments in foreign currencies.The firm’s 2022E earnings are forecast to grow 8.68% YoY to Bt2,116mn, driven by the depreciation of the baht, the development of new projects and expansion to new markets with low competition.

Macroeconomics

<ul><li>We have a positive view on the 2020E Thai economy after the 3Q20 GDP growth came out significantly better than expected.</li><li>The Office of the National Economic and Social Development Council (NESDC) reported that Thailand's 3Q20 GDP contracted by 6.4% YoY (vs. the Bloomberg consensus forecast at -9.1% YoY), improving from the 12.1% decline in the previous quarter.</li><li>The NESDC revised up its 2020E GDP growth projection to -6% vs. -7.5% projected in August, while it forecasts 2021E GDP growth at +3.55% to 4.5%.</li></ul>

We have a positive view on the 2020E Thai economy after the 3Q20 GDP growth came out significantly better than expected.The Office of the National Economic and Social Development Council (NESDC) reported that Thailand's 3Q20 GDP contracted by 6.4% YoY (vs. the Bloomberg consensus forecast at -9.1% YoY), improving from the 12.1% decline in the previous quarter.The NESDC revised up its 2020E GDP growth projection to -6% vs. -7.5% projected in August, while it forecasts 2021E GDP growth at +3.55% to 4.5%.

Upbeat 3Q20 GDP; Positive View on Thai Economy

Asean-focused. Ex-Head of Thai Research

Athaporn Arayasantiparb, CFA

Asean (Thailand) Focused Independent Research

M Corp Review

M Corp is led by Athaporn Arayasantiparb who served as Head of Research for UOB and ANZ in Thailand and was an award-winning telecoms analyst at UBS in 2010 (AsiaMoney Thailand category) and Regional Strategist for DMG in Singapore. Prior to that, he also served as Kasikornbank credit analyst and scholar. He has a total work experience of 17 years, of which 14 were in research and 4 in research management roles. He started his career as an engineer for PTT and currently manages family investments. He holds an MBA from Stern (NYU) and CFA Charter since 2006. Apart from IPO Radar, which focuses on future listings, MCorp Review also provides six on-going thematic series ranked by frequency in descending order, namely: 1) Silicon Stories (technology) 2) Sathorn Series (financial services) 3) Thai-Coons (billionaire origin stories) 4) Reality Check (data-driven, investigative) 5) Thai Media Spotlight; and 6) Thai Macro Watch (global market drivers).

Resistance is futile in the world of technology. In this review, we observe a number of Thai companies getting on the bandwagon. Others are finding it more difficult to adapt. For those with the strength to make real progress, it may be worth a look.<ul>
<li>
BAY upgrades Finnovate to venture capital after years of being an integral part of the bank. Finnovate's portfolio now includes Omise (cryptocurrency), Grab (food delivery), and Finnomena (financial advisory).</li>
<li>
Rise of robots. Thailand emerges as top ten user of industrial robots globally and key player in emerging markets and threatening both agricultural and industrial jobs nationwide, according to TNN Business Watch.</li>
<li>
RS reported strong profit growth of over 60% but more importantly, much of this is driven by yet a new business....e-commerce.</li>
<li>
Three interesting Thai startups were recently identified based on their strong funding: 1) a CP Group-backed AI firm Amity; 2) aCommerce, an e-commerce end-to-end enabler; and 3) Synqa, the parent company of Omise.</li>
<li>
Lazada goes omni-channel. Lazada sets up its first pop-up store at Siam Center emulating American leaders like WalMart and Amazon. They may have lost the crown to Shoppee, but it's still a better investment that local defender COL, which partners with rival JD.com.</li>
</ul>

Resistance is futile in the world of technology. In this review, we observe a number of Thai companies getting on the bandwagon. Others are finding it more difficult to adapt. For those with the strength to make real progress, it may be worth a look.

BAY upgrades Finnovate to venture capital after years of being an integral part of the bank. Finnovate's portfolio now includes Omise (cryptocurrency), Grab (food delivery), and Finnomena (financial advisory).

Rise of robots. Thailand emerges as top ten user of industrial robots globally and key player in emerging markets and threatening both agricultural and industrial jobs nationwide, according to TNN Business Watch.

RS reported strong profit growth of over 60% but more importantly, much of this is driven by yet a new business....e-commerce.

Three interesting Thai startups were recently identified based on their strong funding: 1) a CP Group-backed AI firm Amity; 2) aCommerce, an e-commerce end-to-end enabler; and 3) Synqa, the parent company of Omise.

Lazada goes omni-channel. Lazada sets up its first pop-up store at Siam Center emulating American leaders like WalMart and Amazon. They may have lost the crown to Shoppee, but it's still a better investment that local defender COL, which partners with rival JD.com.


Silicon Stories M: If You Can't Beat Them, Join Them

Thailand

Major Cineplex Group Public Company Limited is Thailand's largest operator of movie theaters, providing cinema operations and a wide range of entertainment services. Beyond movie showings, the company offers bowling alleys, karaoke rooms, ice skating rinks, advertising services, and rental spaces. Major Cineplex Group was founded in 1995 and is headquartered in Bangkok, Thailand.

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Major Cineplex Group (MAJOR TB)

Market Outlook

The SET Index is expected to move sideways up, with the resistance at 1,630/1,635 points and the support at 1,611 (50-week EMA)/1,600 points. We...

Krungthai XSpring

Sell on Fact as Positives Already Absorbed

Net Profit growth of 160 SET-listed firms forecast to average at +31.3% YoY and +21.5% QoQ Retail, finance, food, media, tourism and...

Krungthai XSpring

Big Cap Tactical Picks - Aug 3, 2022

MEGA’s share price has rebounded by more than 5% over the past two weeks on the market’s expectations for a limited impact from Myanmar’s government

Krungthai XSpring

Upbeat 3Q20 GDP; Positive View on Thai Economy

We have a positive view on the 2020E Thai economy after the 3Q20 GDP growth came out significantly better than expected. The Office of the...

Krungthai XSpring

Silicon Stories M: If You Can't Beat Them, Join Them

Resistance is futile in the world of

Athaporn Arayasantiparb, CFA

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