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 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.

Mid-market focused investment bank within SE Asia, Evolve Capital Advisory Pte Ltd

Evolve Capital Research

Mid-market focused investment bank within SE Asia

Evolve Capital Advisory Pte Ltd

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hyphens-pharma-international" target="_blank" data-smartkarma-citation="entities:28034:1" rel="noopener">Hyphens Pharma International (HYP SP)</a> is a specialty pharmaceutical and consumer healthcare group. It has three key operating segments: Pharmaceutical and Medical Aesthetics, Proprietary Brands and Digital Platform and E-Pharmacy.</li>
<li>It has a direct presence in five ASEAN countries, including Singapore, Indonesia, Malaysia, the Philippines and Vietnam.</li>
<li>We remain NEUTRAL on Hyphens as we think the stock currently trades at fair value. </li>
</ul>



Hyphens Pharma International (HYP SP) is a specialty pharmaceutical and consumer healthcare group. It has three key operating segments: Pharmaceutical and Medical Aesthetics, Proprietary Brands and Digital Platform and E-Pharmacy.
It has a direct presence in five ASEAN countries, including Singapore, Indonesia, Malaysia, the Philippines and Vietnam.
We remain NEUTRAL on Hyphens as we think the stock currently trades at fair value. 


Hyphens Pharma - FY25 Earnings Update - No Clear Catalysts, FY26 Recovery a Low-Bar Normalisation

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>Despite the challenges in Myanmar. MEGA reported all-time-high level of net profit at Bt659m (+8%YoY, +16%QoQ), higher than our forecast and 19% above BB consensus estimated.</li>
<li>Solid 3Q22 result thanks to solid distribution business Excluding extraordinary items, core profit was at Bt669m (+25%YoY, +23%QoQ). The 9M22 result accounted for 84% of our 2022E.</li>
<li>Mega We Care’s revenue (Branded products business) reach to Bt2bn (flat YoY,+2%QoQ) driven by a recovery in revenue from prescription pharmaceutical products along with rebounding number of patient in hospitals</li>
</ul>


Despite the challenges in Myanmar. MEGA reported all-time-high level of net profit at Bt659m (+8%YoY, +16%QoQ), higher than our forecast and 19% above BB consensus estimated.
Solid 3Q22 result thanks to solid distribution business Excluding extraordinary items, core profit was at Bt669m (+25%YoY, +23%QoQ). The 9M22 result accounted for 84% of our 2022E.
Mega We Care’s revenue (Branded products business) reach to Bt2bn (flat YoY,+2%QoQ) driven by a recovery in revenue from prescription pharmaceutical products along with rebounding number of patient in hospitals


MEGA : 3Q22 Profit Reach to All-Time-High Level

<ul>
<li>MEGA’s share price corrected 30%from its peak, which we believe it has mostly priced in obstacles to business operation in Myanmar.We upgrade to BUY with a target price of Bt54</li>
<li>Expect 3Q22 result to be another strong quarter Mega We Care’s revenue (Branded products business) is expected to reach at Bt2bn (+1%YoY,+3%QoQ) driven by a recovery in revenue from prescription</li>
<li>Maxxcare’s revenue (Distribution business) is expected to drop to Bt1.75bn (-7%YoY, -6%QoQ) pressured by lower consumer purchasing power following a rising inflation and Myanmar’s Kyat depreciation</li>
</ul>


MEGA’s share price corrected 30%from its peak, which we believe it has mostly priced in obstacles to business operation in Myanmar.We upgrade to BUY with a target price of Bt54
Expect 3Q22 result to be another strong quarter Mega We Care’s revenue (Branded products business) is expected to reach at Bt2bn (+1%YoY,+3%QoQ) driven by a recovery in revenue from prescription
Maxxcare’s revenue (Distribution business) is expected to drop to Bt1.75bn (-7%YoY, -6%QoQ) pressured by lower consumer purchasing power following a rising inflation and Myanmar’s Kyat depreciation


MEGA : Attractive Valuation with Sustainable Growth Outlook

<ul>
<li>Downgrade our recommendation from BUY to HOLD with a target price of Bt54. Despite the challenges in Myanmar. MEGA reported 2Q22 net profit of Bt570m (+13%YoY, -7%QoQ), in-line our expectation </li>
<li>Another strong quarterly performance Excluding extraordinary items, core profit was at Bt544m (+16%YoY, -13%QoQ). The 1H22 result accounted for 56% of our 2022E.</li>
<li>The YoY growth in earnings supported by 1) Mega We care’s sales grew to Bt2bn (+19%YoY)and close to the highest level in 3Q21,and 2) gross profit margin expanded to 42.6% </li>
</ul>


Downgrade our recommendation from BUY to HOLD with a target price of Bt54. Despite the challenges in Myanmar. MEGA reported 2Q22 net profit of Bt570m (+13%YoY, -7%QoQ), in-line our expectation 
Another strong quarterly performance Excluding extraordinary items, core profit was at Bt544m (+16%YoY, -13%QoQ). The 1H22 result accounted for 56% of our 2022E.
The YoY growth in earnings supported by 1) Mega We care’s sales grew to Bt2bn (+19%YoY)and close to the highest level in 3Q21,and 2) gross profit margin expanded to 42.6% 


MEGA : Strong Performance Amid Uncertainty

Thailand

Mega Lifesciences is a leading international pharmaceutical and nutraceutical company that manufactures, markets, sells, and distributes quality pharmaceutical products, medicinal supplements, and personal health products. The company also operates through its branded products segment, Mega We Care, and a distribution platform, Maxxcare, for third-party products. It is headquartered in Bangkok, Thailand, and was founded in 1982.

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Mega Lifesciences (MEGA TB)

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

Hyphens Pharma - FY25 Earnings Update - No Clear Catalysts, FY26 Recovery a Low-Bar Normalisation

We remain NEUTRAL on Hyphens Pharma as we think the stock currently trades at fair value, with Vietnam being the primary drag.

Evolve Capital Advisory Pte Ltd

MEGA : 3Q22 Profit Reach to All-Time-High Level

Despite the challenges in Myanmar. MEGA reported all-time-high level of net profit at Bt659m (+8%YoY, +16%QoQ), higher than our forecast and 19%...

Pi Securities PCL, Thailand

MEGA : Attractive Valuation with Sustainable Growth Outlook

MEGA’s share price corrected 30% from its peak, which we believe it has mostly priced in obstacles to business operation in Myanmar. We upgrade to...

Pi Securities PCL, Thailand

MEGA : Strong Performance Amid Uncertainty

Downgrade our recommendation from BUY to HOLD with a target price of Bt54. Despite the challenges in Myanmar. MEGA reported 2Q22 net profit of...

Pi Securities PCL, Thailand

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