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>The 1Q24 earnings increased YoY due to a wider profit margin but decreased 32% QoQ owing to higher operating expenses.</li><li>M’s earnings came in 8% below our projection thanks to higher-than-expected operating expenses.</li><li>The 1Q24 core profit accounted for 20% of our 2024E earnings projection, which we maintain.</li></ul>

The 1Q24 earnings increased YoY due to a wider profit margin but decreased 32% QoQ owing to higher operating expenses.M’s earnings came in 8% below our projection thanks to higher-than-expected operating expenses.The 1Q24 core profit accounted for 20% of our 2024E earnings projection, which we maintain.

MK RESTAURANT GROUP - 1Q24 Earnings up 7% YoY but Down 32% QoQ, 8% Below the Estimate

<ul><li>We cut our earnings forecasts to reflect weak purchasing power and increased competition in the restaurant business.</li><li>As a result, the three-year earnings growth is projected to decelerate to a CAGR of just 6%, following 17% growth in 2023.</li><li>This diminishes the stock's appeal in terms of the growth potential.</li></ul>

We cut our earnings forecasts to reflect weak purchasing power and increased competition in the restaurant business.As a result, the three-year earnings growth is projected to decelerate to a CAGR of just 6%, following 17% growth in 2023.This diminishes the stock's appeal in terms of the growth potential.

Mk Restaurant Group M - Weak Purchasing Power, Higher Competition

<div><div><div><div><ul><li>2Q23E earnings are expected to have fallen 2% YoY but increased 33% QoQ: KTX expects M to report a 2Q23E net profit of Bt432mn (-2% YoY, +33% QoQ) due to the continued recovery in the number of dine-in customers in all of M's restaurant chains.</li><li>Economic activities and higher tourist arrivals, along with the series of public holidays in April, likely contributed to the rise in customer visits.</li><li>Compared to 2Q22, the SSSG for 2Q23E is expected to have increased further at 11%, 6% and 14% for MKR, Yayoi and LCS, respectively. </li></ul></div></div></div></div>

2Q23E earnings are expected to have fallen 2% YoY but increased 33% QoQ: KTX expects M to report a 2Q23E net profit of Bt432mn (-2% YoY, +33% QoQ) due to the continued recovery in the number of dine-in customers in all of M's restaurant chains.Economic activities and higher tourist arrivals, along with the series of public holidays in April, likely contributed to the rise in customer visits.Compared to 2Q22, the SSSG for 2Q23E is expected to have increased further at 11%, 6% and 14% for MKR, Yayoi and LCS, respectively. 

MK Restaurant Group Plc (M) - 2Q23E Earnings Expected to Have Fallen 2% YoY but Increased 33% QoQ

<div><div><div><ul><li>The return of tourist arrivals alongside the strong branding of the firm’s restaurant chains makes M attractive in the food and beverage sector.</li><li>Its two-year earnings (2022-24E) are expected to achieve a 25% CAGR.</li><li>While M is likely to face higher costs, the negative impact may be partially offset by economies of scale, keeping the stock appealing.</li></ul></div></div></div>

The return of tourist arrivals alongside the strong branding of the firm’s restaurant chains makes M attractive in the food and beverage sector.Its two-year earnings (2022-24E) are expected to achieve a 25% CAGR.While M is likely to face higher costs, the negative impact may be partially offset by economies of scale, keeping the stock appealing.

Mk Restaurant Group -Two-Year Earnings to Achieve a 25% CAGR

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>Maintain BUY recommendation with a target price of Bt64.M’s 3Q22 net profit came in at Bt408m(-7%QoQ)and recovery from a loss of Bt257m in 3Q21,in-line our forecast and BB consensus estimated.</li>
<li>Solid 3Q22 earnings amid rising food costs Its net profit came out at Bt257m(-7%QoQ) and recovery from a loss of Bt257m in 3Q21.The 9M22 result accounted for 68%of our 2022E.</li>
<li>The YoY recovery in earnings driven by solid SSSG in three main brands (MK at +105%YoY, Yayoi at +83%YoY, (Laem Charoen Seafood) LCS at +118%YoY)</li>
</ul>


Maintain BUY recommendation with a target price of Bt64.M’s 3Q22 net profit came in at Bt408m(-7%QoQ)and recovery from a loss of Bt257m in 3Q21,in-line our forecast and BB consensus estimated.
Solid 3Q22 earnings amid rising food costs Its net profit came out at Bt257m(-7%QoQ) and recovery from a loss of Bt257m in 3Q21.The 9M22 result accounted for 68%of our 2022E.
The YoY recovery in earnings driven by solid SSSG in three main brands (MK at +105%YoY, Yayoi at +83%YoY, (Laem Charoen Seafood) LCS at +118%YoY)


Thailand

MK Restaurants Group PCL operates restaurants. The Company supplies traditional Thai food.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

MK Restaurants Group (M TB)

MK RESTAURANT GROUP - 1Q24 Earnings up 7% YoY but Down 32% QoQ, 8% Below the Estimate

The 1Q24 earnings increased YoY due to a wider profit margin but decreased 32% QoQ owing to higher operating expenses. M’s earnings came in 8%...

Krungthai XSpring

Mk Restaurant Group M - Weak Purchasing Power, Higher Competition

We cut our earnings forecasts to reflect weak purchasing power and increased competition in the restaurant business. As a result, the three-year...

Krungthai XSpring

MK Restaurant Group Plc (M) - 2Q23E Earnings Expected to Have Fallen 2% YoY but Increased 33% QoQ

Economic activities and higher tourist arrivals, along with the series of public holidays in April, likely contributed to the rise in customer visits.

Krungthai XSpring

Mk Restaurant Group -Two-Year Earnings to Achieve a 25% CAGR

The return of tourist arrivals alongside the strong branding of the firm’s restaurant chains makes M attractive in the food and beverage sector.

Krungthai XSpring

M : Solid 3Q22 Earnings as Expected

Maintain BUY recommendation with a target price of Bt64. M’s 3Q22 net profit came in at Bt408m (-7%QoQ) and recovery from a loss of Bt257m in 3Q21,...

Pi Securities PCL, Thailand

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)