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>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

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Pi Securities PCL, Thailand

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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)


<ul>
<li>Maintain BUY recommendation for M with a target price of Bt64. We expect the company to report 3Q22 net profit at Bt426m(-3%QoQ)and recovery from a loss of Bt257m in 3Q21.</li>
<li>Expect 3Q22 turn to profit but should be soften QoQ   We expect 3Q22 net profit to be at Bt426m (-3%QoQ), recovery from a loss of Bt257m in 3Q21.</li>
<li>Revenue in 3Q22 is expected at Bt4bn (+104%YoY,flat QoQ) supported by solid SSSG in three main brands(MK at +109%YoY,Yayoi at +85%YoY,LCS at +120%YoY)and the selling price adjustment in June 2022.  </li>
</ul>


Maintain BUY recommendation for M with a target price of Bt64. We expect the company to report 3Q22 net profit at Bt426m(-3%QoQ)and recovery from a loss of Bt257m in 3Q21.
Expect 3Q22 turn to profit but should be soften QoQ   We expect 3Q22 net profit to be at Bt426m (-3%QoQ), recovery from a loss of Bt257m in 3Q21.
Revenue in 3Q22 is expected at Bt4bn (+104%YoY,flat QoQ) supported by solid SSSG in three main brands(MK at +109%YoY,Yayoi at +85%YoY,LCS at +120%YoY)and the selling price adjustment in June 2022.  


Thailand

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

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MK Restaurants Group (M TB)

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

M : Expect 3Q22 Profit to Remain Solid

Maintain BUY recommendation for M with a target price of Bt64. We expect the company to report 3Q22 net profit at Bt426m (-3%QoQ) and recovery from...

Pi Securities PCL, Thailand

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